Yesterday, I was giving a webinar for Trading Challenge students when a company issued a press release.
The stock spiked from $7 to $10 in 3 minutes.
I decided to watch because it looked like it was hanging in the $9s.
And the news looked good on the surface.
But after reading the press release, I told my students the news was both good and bad.
I warned them not to chase because it might come down just as fast as it spiked.
Why?
Because I’ve been around long enough to know the difference between news and hype.
And I’ve learned to read the news with a trader’s mindset (mostly through trial and error).
Sure enough, 20 minutes later the stock was right back where it started.
A few students were surprised.
“Why is it dropping?”
Let’s uncover how to read the news like a trader…
Table of Contents
The Setup
To become a better trader, you need to understand catalysts (I’ll share some links to resources, so keep reading).
This is why Axil Brands (NYSE: AXIL) spiked…
It appears to be good news, right? But even with distribution deals, that’s not always the case…
Why “Good News” Isn’t Always Good for the Company
The problem with Walmart deals is they usually crush the small company.
Small companies don’t really have a choice.
They have to get involved because they want Walmart distribution.
But if you actually run the numbers, it’s often very bad for the small company.
There was even a study saying “that gross margin is significantly less for Wal-Mart suppliers than non-suppliers.”
The study went on to say that “Wal-Mart is able to extract more concessions from smaller firms than from larger firms.”
So, the PR looked good (and it pulled in a LOT of inexperienced traders).
But then reality hit…
The first thing a lot of people ask is…
Why all the selling right around $10? Was it short sellers?
Take a look at this daily candle chart from January 2025 to yesterday (April 29)…
Notice how every time AXIL spiked big, it topped out in the $10s.
That’s exactly where it topped during my webinar (it doesn’t show on the chart because premarket prices don’t show on the daily candle).
What that tells me is that there is a TON of selling pressure in the $10s,
In this case it could be bagholders (traders who bought near the top of those spikes and then got crushed).
Or it might be short sellers, or even insiders (I don’t know and don’t care).
The point is, it has a history of failing in exactly the same place (and it only took a few seconds to pull up a long term chart).
So, AXIL had two big red flags:
- Walmart’s history of predatory deals with small companies
- A history of topping in the $10s before getting crushed
That explains AXIL, but what about reading the news like a trader in general?
There’s one thing you should NEVER do, regardless of how good the news seems…
Never Try To Adapt the Market to Your Ego
Recognize that YOU have to adapt to what the market is doing.
The market doesn’t care about you. And the news isn’t “good” until the market says so.
It’s about adapting to what the market is doing.
If you trade good risk-to-reward setups…
And if you understand how catalysts can affect stock prices (and react instead of predict)…
Trading will be FAR less frustrating.
Millionaire Moves
I have to give big props to student-turned-master trader Jack Kellogg.
This time it isn’t about a big win or loss.
It’s about Jack realizing that he needed to take a step back from trading.
Some people wonder why, because Jack just had two of the biggest wins of his trading career.
But he also took one of his biggest losses.
And he made the very mature, smart decision to take a month off and focus on teaching.
Jack still plans to paper trade and test, to stay sharp.
That’s a millionaire move I will ALWAYS support.
What about you?
Are you ready to learn the Millionaire Formula?
There’s only 1 day left to register for the Millionaire Formula Conference.
If today’s post interested you, you’ll LOVE session #6 on Saturday afternoon when we’ll be talking more about how to read news like a trader (see, I told you I’d hook you up).
The Millionaire Formula Conference is FREE… But there’s ONE catch.
You have to register ahead of time.
Yes, Tim! Show Me
The Formula That 50 Everyday People Have Used to
Crush the Market and Make $1M+ Profits
Learn more about catalysts before the conference when you read these posts:
- How to Spot Stock Catalysts — With Key Patterns and Examples
- My 4 Favorite Catalysts & How To Play Them
- The 7 Key Catalysts That Can Lead To Epic Short Squeezes
Finally, remember that this is all about achieving your goals…
More Breaking News
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- HIVE Stock Drops As Zero-Coupon Note Deal Rattles Traders
On My Radar
The beauty of trading is that you can do it from ANYWHERE…
I’ve been trading from some crazyyyy places lately…never forget that it’s not just about the money, a big part of the beauty of trading is that you can do it from ANYWHERE and our world is so magnificent you must #exploremoreً and #travelmore and capitalize on THE LAPTOP… pic.twitter.com/s57gIL66NM
— Timothy Sykes (@timothysykes) April 29, 2026
I LOVE my life and being able to travel.
If you’re ready to study hard and put in the effort so you can reach your goals, be SURE to register for the conference.
Come ready to take notes.
It doesn’t matter how long you’ve been trading, you’ll add to your knowledge account so register now.
See you there.
Cheers,
– Tim Sykes
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