Catalysts are driving this market…
From the fear of interest rates going higher, the horrific attacks on Israel…
To the setups as well.
If you’re currently trading in this market, it’s critical that you understand these changes and how they can impact your trading…
Let me break it down for you.
Table of Contents
Think Differently
In today’s market, everyone here needs to think differently.
I’ve always said you need to adapt or perish…
And as that may sound harsh, it’s true.
In today’s market, we’re not seeing the familiar trends that we’re used to…
Morning panics aren’t as predictable…
We’re not getting the bounces we once saw…
Instead, we’re seeing those opportunities later in the day.
What do I mean by that?
Let’s take a look at HUB Cyber Security Ltd. (NASDAQ: HUBC)
Source: StocksToTrade
The best time to buy HUBC wasn’t during the run-up in the morning…
It happened late morning, and early afternoon when it spiked from nearly $0.45 to $0.80.
This is typically one of the worst times to trade.
You see the volume drop, you don’t have the volatility…
And this is why I typically stay away from this time frame…
But right now, this is where you’re seeing some of the best price movement so you have to be willing to adapt to what’s working.
Now, I’m not saying forget everything else I’ve talked about over the last several months…
Instead, you just need to be aware of what’s happening if you want to find some of the best opportunities out there.
The main reason for this late price movement is due to these over-aggressive short sellers that we continue to see time and time again…
And when they think they’ve finally won, the stock ends up getting squeezed higher and higher.
In a market like this, you need to start thinking the opposite of what you normally do…
And the best way to test any thesis is by doing it with a small position size.
Let me show you what I mean.
Expect The Worst Stocks To Perform The Best
The worst plays are becoming the biggest spikers…
Just take a look at these charts.
ParaZero Technologies Ltd. (NASDAQ: PRZO)
Source: StocksToTrade
Maris-Tech Ltd. (NASDAQ: MTEK)
Source: StocksToTrade
As it doesn’t look like much, we’re still seeing these stocks soar to multi-month highs in just a day…
But I want you to notice that they tend to fail by day two, so be careful.
Remember, every time we look to trade, we’re looking to get in and out…
We’re not investing, and we don’t want to hold onto them for too long.
Eventually, these short sellers will be right, and at any moment the stock can drop to its lows.
Knowing that, let’s go back to HUBC and take a look at how I traded it.
Source: StocksToTrade
Take a look at where I drew the box.
We have a little bounce, fake out, little bounce, fake out, little bounce, fake out…
It’s just going up and down and trading horizontally…
But then, it finally cracks support and it’s off to the races.
If you’ve been trading for a while in 2023, we’ve been seeing a lot of these plays.
You have to expect that the shorts are going to get squeezed…
But they have been happening earlier in the morning, not so much in the afternoon.
When I traded HUBC I entered my trade at $0.42 and exited at $0.409 for a 2.62% loss. (Risked $3,150).
I did the right thing and cut losses quickly because of how choppy it was…
Because I didn’t expect it to soar higher…
And now knowing it did, I’ll keep this in the back of my mind going forward as we’re seeing this with more plays.
Trading is all about adapting, and you’re not going to be perfect with every trade, so make sure you’re studying and practicing every chance you get.
More Breaking News
- HP Inc. Surpasses Q1 Expectations Amid Rising Costs
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- Redwire Corporation Stock Surges Amid Strategic Expansion Moves
- Cardio Diagnostics to Unveil AI-Powered Precision Health Platform at Investor Call
Study and Practice
Not everyone likes change, but you need to study and adapt to what’s currently happening in this market.
Who truly knows how long this will last…
It could be a few days, weeks, months…
But right now, we’ve seen some of the best opportunities happen from these beaten-down stocks…
Being in this industry for over 20+ years, this is nothing new for me, but it may be for you…
And every time the market shifts and I start to notice a different trend, I trade with a small position size and use extreme caution.
Those traders who don’t adapt eventually fail…
So you must keep an eye out for what’s happening in the market and why…
And adapt accordingly.
That’s why I encourage all of you to join this weekly FREE trading session to help you stay up to date on the latest market trends…
If I see anything interesting, I’ll be sure to alert you in chat.
Stay safe!
-Tim
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