Volatility is at an all-time high in the market right now. And I don’t see it slowing down anytime soon.
Here are the major factors moving stocks:
- The Fed announced lower interest rates last week. The lowest rates in three years.
- Trump and Xi Jinping came to a short term trade agreement. The first since the beginning of the trade-war drama.
- Major tech companies announced earnings last week. As an example, AMZN surged 14% to new all-time highs after beating expectations.
Due to all these bullish catalysts, the overall market surged to new all-time highs as well last week.
And thus, the bull market continues …
But in all this commotion, it’s easy for traders to get lost.
Shares of stocks like Amazon.com Inc. (NASDAQ: AMZN) are too expensive for those with a small account.
What are we going to do? Buy ten shares and hope for another 14% gain?
That’s not how to use a small account effectively.
Right now, there’s a ton of opportunity in the market to profit. But you’re wasting time if you focus on the media-squeezed blue-chip companies.
Instead, my students and I focus on stocks like Cambium Networks Corporation (NASDAQ: CMBM). It spiked 1,100%* last week.
And it’s not alone. We’ve already seen multiple Supernova spikes like CMBM in 2025.
You might have missed last week’s move, that’s OK.
Let’s review so that you’re prepared for the next Supernova.
Last Week’s 1,000% Runner
On October 29, during premarket hours, Cadmium Networks announced that it planned to integrate with StarLink to advance its security platform and cloud management system.
And by premarket hours on October 30, the price spiked 1,100%*.
You can see the entire move on the chart below. Every candle represents one trading minute:
To an inexperienced trader, the opportunities to profit aren’t obvious during a spike like this.
More Breaking News
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- AZI Stock Slips as Investors Eye Key Developments
- Needham Upgrades Ichor Holdings to Buy Amid Positive Forecasts
In real time, when there’s money on the line, and the price is already up +100%, emotions can take over.
It’s our job as traders to turn off the emotion and recognize the patterns within the price action.
These stocks can follow multiple patterns and angles to profit as they spike and ultimately crash. That’s the life cycle of a volatile small-cap stock.
One of the simplest patterns for a new trader to learn is the breakout setup.
Take another look at CMBM on the chart below.
Try reading the price action from left to right as if the stock was developing in real time.
Those are just the breakout setups …
There’s so much opportunity for traders in this market.
That should be encouraging. But there’s also a hidden warning: Don’t get too greedy.
- We don’t need to swing for the fences.
- We don’t need to play every angle of the stock.
- We don’t need to trade it perfectly.
Stick to a setup that makes sense, and focus on reliable percent gains with clear risk levels.
To be clear, I’m always scanning the market for the next Supernova stock. And in this incredible 2025 volatility, it could come as early as this week.
The next time I see a stock that starts to follow my Supernova framework:
Cheers
*Past performance does not indicate future results
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