We’re in the first few days of an escalating war in Iran…
- The UAE defence ministry says it’s responding to more Iranian missile and drone threats.
- Explosions were reported in Qatar and Bahrain.
- Azerbaijan says it’s preparing “retaliatory measures” after being attacked by two Iranian drones
- UK Prime Minister Keir Starmer says he will send four fighter jets to Qatar to strengthen defensive operations.
Trump himself said the war could last weeks.
As a result, I’m prepared for more volatility from the oil market and defense stocks.
For example, yesterday the U.S. Navy tapped a little-known AI company for its drone-mounted defenses that counter hostile Unmanned Aircraft Systems (“UAS”).
This is a wartime business deal.
One of the strongest catalysts in the history of the market.
U.S. Navy Partnership
Yesterday morning, on March 5, Gaxos.ai Inc. (NASDAQ: GXAI) announced that America First Defense (“AFD”) secured a license for its Detachable Drone Highjacker (“DDH”).
It’s a drone-mounted electronic warfare payload that’s designed to neutralize drone threats through targeted cyber operations.
Drone warfare escalated when Russia invaded Ukraine in 2022.
And we’re already seeing footage of drone strikes from the Middle East:
Goooooooooooood morning! Crazier and crazier videos forming out of the #MiddleEastCrisis as an Iranian drone hit a residential building here in #Dubai but thankfully failed to detonate…I literally had an Airbnb booked nearby this building starting tomorrow so it's pretty insane… pic.twitter.com/iLpKDq7lak
— Timothy Sykes (@timothysykes) March 1, 2026
This defense-contract catalyst is in the middle of an active war where drones are being used to attack oil infrastructure, shoot at UAE refineries, and threaten allies across the entire region.
Now, AFD is still a private company. So it’s not listed on the stock market.
But GXAI is a public company. And it announced a 19.99% stake in AFD on March 3, just days before the recent licensing announcement with the Navy.
GXAI spiked 102% in premarket due to the Navy licensing news.
And I alerted it for my students before it pushed to new highs:
Whewwwwwww, what a beautifullllll runner on $GXAI with the Navy news, DEAD ON ALERT from https://t.co/6cuTVNHVBf I didn't enter until the 1.90s, trying to et breakfast so much for that LOL…congrats to sooooo many https://t.co/occ8wKmlgm students, what an awesome premarket… pic.twitter.com/moJTsiFdtg
— Timothy Sykes (@timothysykes) March 5, 2026
I pulled a 15% gain from this premarket spike.
It followed my breakout pattern perfectly.
And it could do it again today…
The Next Trade
The breakout pattern is one of the easiest to recognize for new traders.
- A stock spikes with a catalyst.
- It eventually reaches a high and pulls back.
- The price consolidates.
- Then it surges toward the previous highs.
With this strategy, we can trade the most explosive price action on every new stock spike.
Here’s a better look at the pattern on GXAI from March 5:
Pull up a chart of GXAI and look for the most recent highs.
That’s your resistance level.
If the price consolidates and pushes toward that level again, it’s game time.
You can either:
- Buy in anticipation of the breakout.
- And use a lower support level for a stop loss.
- Or buy after the breakout is confirmed.
- And use the breakout level for a stop loss.
Don’t get greedy.
My 15% gain from GXAI rivals the 17% gain on the SPY over the entirety of 2025.
That’s almost a year’s worth of profits in a single morning…
The conflict in Iran isn’t over. GXAI sits at the intersection of AI and defense during an active wartime catalyst.
That combination doesn’t come around often. Take advantage of this volatility.
Cheers
*Past performance does not indicate future results
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