The past couple of days we’ve seen a new trend in premarket runners…
Spike and fail, spike and fail, spike and fail.
Does that mean the Supernova Summer is coming to an end?
Not at all. Nobody can predict what happens tomorrow, let alone next week.
But the spike and fail trend means there’s one thing you MUST do…
And it’s true whether you catch an after-hours breakout, or a premarket Supernova.
What DOESN’T work is holding and hoping.
I rarely sell right at the top (usually I’m WAY too early).
Sometimes I miss the top and have to sell on the way back down.
But you won’t catch me riding the backside of a Supernova all the way to a dumb loss.
Or holding through boring, choppy, sideways action.
So, while I still think you should get up early to learn by watching and trading these big spikers…
I also want you to recognize when the trend shifts on any given day…
Table of Contents
What Was That About a Morning Supernova?
For weeks (months, even) I’ve been trying to get you to wake up early and take advantage of premarket Supernovas.
I can’t tell you how many messages or emails I get from people who say
“Tim, you can’t trade premarket, that’s insider trading.” No, it’s not.
Most brokers let you trade from 7 a.m. ET. Some let you trade from 4:00 a.m (but you might have to fill in paperwork).
Even if you’re already savvy and taking advantage of premarket, there’s a guideline my top students and I follow…
Smart Traders Take Profits Into Strength
Remember that most traders lose. You have to study and gain experience.
But if you keep reminding yourself to take profits into strength, it can save you a lot of time (and EXPENSIVE market education).
In my opinion, the best time to be long in this market is early.
It’s when you can take advantage of overaggressive shorts who don’t realize how far these plays can go.
For example, on Tuesday (June 30) 707 Cayman Holdings Limited (NASDAQ: JEM) was up 225% by 9:00 a.m. ET.
But by 11:00 a.m. it had dropped 46% off its premarket highs.
I could never hold through that. Why would anyone?
Especially when there were opportunities to lock in profits or break even (or take a small loss).
But It Could Keep Going, Right?
Why? Tell me exactly why it could keep going? What’s your thesis?
I see too many people eager to trade with zero idea how fast these stocks can drop.
Even if you thought it could keep going (which JEM did in after-hours trading) there was no reason to hold through a big loss.
Anyone could have bought the breakout in after-hours.
Remember, these stocks are not investments (99% are terrible companies that will fail).
Short sellers know it. They are toxic and overaggressive, but over time they take control.
You have to recognize the trend…
Like what happened with Creative Medical Technology Holdings, Inc. (NASDAQ: CELZ).
CELZ was up +462% by 9:54 a.m. on Tuesday. By the end of the day it had dropped nearly 75% off the high.
Anyone who bought early could have sold for a win, break-even, or a small loss.
Anyone who bought the spike and didn’t get out… became a bagholder.
Here’s one more from yesterday…
Eshallgo Inc. (NASDAQ: EHGO) has been spiking (and FAILING) every other day for the past two weeks.
Which means there’s NO EXCUSE for holding it any longer than it takes to either lock in a single, or cut losses quickly.
Hold and hope is NOT a strategy.
So, what’s the answer?
I keep trying to get people to get up early and take advantage of these Supernovas.
At the same time, you MUST take profits into strength. Even tiny profits, over time, add up.
If you have ANY questions about this pattern, please, I implore you to…
Study the 7-Step Framework
I wrote this comprehensive post on the 7-step framework.
Remember, it can play out in different timeframes.
In this market, the entire 7-step framework can play out in a matter of hours.
Millionaire Moves
My Boston Inner Circle meetup was SO good. I LOVE teaching and talking with so many great traders, students, and friends.
INNER CIRCLE BOSTON 2026…such a great great great group of traders, students and friends, thank you to all the mentors @Jackaroo_Trades @Mari_trades @Stratataaa @scottstrading11 @tbohen @rockyrackz_ as we work together to CREATE MORE MILLIONAIRES FROM SCRATCH!
WHO WANTS IT BAD… pic.twitter.com/RioXgev3Ez
— Timothy Sykes (@timothysykes) June 30, 2026
If you’re ready to follow in these traders’ footsteps…
Apply for my Trading Challenge today
Catalyst Watch
There’s no giant hot sector or theme in the market right now. You just have to take whatever runner you can, for however much you can.
Try to take profits into strength. Do NOT hold and hope.
And STUDY the 7-step framework. Once you see it, you can’t unsee it.
Remember, even if you miss a play, learn from it and try to do better on the next one
The good news is, this market gives us all near endless opportunities to try and learn and improve upon.
On My Radar
- Props to my long-time Trading Challenge student: “06/30 4:01PM HIMMENY: new best day! +$5,996.78 on the day and new best month by almost 3k!”*
- Will anyone even buy a Lambo hybrid SUV? My Lambos didn’t make me happy.
- Giving back DOES make me happy.
- Nonfarm payroll numbers are due out today. Let’s see how the market reacts.
Key Takeaway
I’ve had to tell more than one trader in the past couple of days to stop being so desperate to trade.
Wait for good setups.
This week we’ve seen fail after fail after fail. You have to learn to recognize the trend.
As always, sometimes the best trade is no trade at all…
Cheers,
– Tim Sykes
*Results not typical. Past performance is not indicative of future results.
Leave a reply