The market is still red hot with volatility.
Due to a U.S.-China trade deal, new AI investments, and lower interest rates from the Fed.
And the patterns I’ve taught for 20+ years are working to perfection.
In October alone, my top student, Jack Kellogg made $3.8 million trading these exact setups.
And he didn’t do it with a fancy hedge fund or big money behind him … All of my millionaire students started with small accounts.
In the beginning, Jack saved money from valeting cars. And he studied these repeating trade patterns religiously.
Now he’s one of the most consistent traders in the game. And he still uses the same patterns to trade.
For an example of the small-cap opportunities in this market: Yesterday’s move was textbook …
On November 4, a tiny stock, which had already spiked 400% in October, showed us a perfect cup and handle pattern.
The breakout was so clean I could’ve pasted it in a trading textbook.
Stop guessing and start recognizing real opportunities …
The Perfect Storm
The setup from November 4 was especially strong because of the timing of the spike.
After a 400%* run in October, most traders thought the move on Scienture Holdings Inc. (NASDAQ: SCNX) was over.
But my students and I understand how this small-cap momentum works. We were watching for a number five bounce on the daily chart.
And during premarket hours on November 4, we got a perfect catalyst:
“Expanded Coverage Reaches Over 100 Million Covered Lives Nationwide.”
The headline announced major new coverage for SCNX’s drug Arbli™. An expanded access through both commercial and Medicare supplement plans.
On the chart of SCNX below, every candle represents one trading day:
The news fueled renewed volume, aspirations for future spikes, and immediately drew trader’s attention.
Combine that with a clean technical setup, and you’ve got a recipe for a fast-moving breakout.
While most traders missed this move, Challenge students recognized the pattern immediately.
The Cup and Handle Pattern
Intraday, the setup couldn’t have been more textbook.
After the news hit, SCNX formed a rounded cup, consolidating sideways in the morning.
Then came the handle pullback, a comparatively low-volume dip that shook out impatient traders and bated shorts for a few minutes.
And finally, the breakout.
The stock pushed through resistance from earlier in premarket. It was a perfect cup and handle breakout that aligned with a number five bounce on the daily chart.
Look at the intraday price action on SCNX below. Every candle represents one trading minute:
Read this blog for more cup and handle examples.
And check out my post on X below that details the exact instructions I gave in the Challenge chat:
Beautifulllllllll premarket cup & handle on $SCNX as I said in my https://t.co/occ8wKmlgm chatroom earlier…nice to see a big spiker/short squeeze as some of the biggest short sellers on this platform got their asses handed to them last runup on this so they're scared like the… pic.twitter.com/yq8uzkQZlc
— Timothy Sykes (@timothysykes) November 4, 2025
This is just one pattern that my millionaire students and I use to trade.
And our process is always the same:
- Recognize repeating setups.
- Wait for confirmation.
- Strike when the odds are in our favor.
Volatile stocks like to follow the same framework and patterns over and over again.
These patterns are based on human emotion. Fear and greed move stocks.
To take full advantage of these moves in the market, watch my video below:
Cheers
*Past performance does not indicate future results
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