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The #1 Trade Opportunities This Week

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Written by Timothy Sykes
Updated 4/12/2024 5 min read
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Attention all traders:

The market dipped last week for a variety of reasons …

  • The main reason is persistent U.S. inflation.
  • Middle-east conflicts are also rising. On Friday, Israeli intelligence alerted a possible strike from Iran.
  • Trade tensions are rising between the U.S. and China.

This is important market information. Even if it might not be fun to learn about. Here’s why it matters:

Three out of four stocks follow the market.

Take a look at the S&P 500 ETF Trust (NYSE: SPY) chart below, every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

When the market is bearish like this, it’s more difficult for stocks to spike.

But we can sidestep this bearish momentum if we focus on the best plays.

Stick with me, I’ll clue you in …

We have to pay attention to the hottest sectors. And right now we’re seeing a lot of cheap oil & gas runners. Here’s why:

  • Summer months mean more people are traveling. Demand for oil goes up.
  • Middle east tensions are exacerbating these volatile movements.

You might remember, in 2022 when Russia invaded Ukraine, Houston American Energy Corporation (AMEX: HUSA) spiked 1,000%.

We saw similar moves when Hamas struck Israel on October 7, 2023.

Conflict in those regions has a big effect on oil prices.

The past few weeks of Houthis attacks on oil transports and the recent threat of an Iran strike on Israel are reigniting the oil & gas sector in a BIG way.

Small Account Opportunities

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We NEVER advocate for strife and conflict in the world.

But the reality is that certain conflicts can create profit opportunities in the market. And as traders, it’s our job to identify those opportunities.

Take a look at the 1,000% spike on HUSA when Russia invaded Ukraine in 2022. On the chart below every candle represents one trading day:

HUSA chart multi-month, 1-day candles Source: StocksToTrade

And it’s worth noting that HUSA started to spike again last week on Friday. I included a chart of the 60% move below.

Every candle represents 1 minute:

HUSA chart intraday, 1-minute candles Source: StocksToTrade

But HUSA isn’t the biggest oil & gas runner in our niche right now … My #1 watch for Monday morning is Indonesia Energy Corporation Limited (AMEX: INDO).

The price spiked 110% on Friday. Almost double the spike from HUSA that day.

And the float is only 4.7 million shares.

Trade Tip: A float below 10 million shares shows a low supply. And the low supply helps prices spike higher when demand increases.

We make sure to focus on the best setups: Low-float runners.

Take a look at the spike on INDO from Friday, every candle represents one minute:

INDO chart intraday, 1-minute candles Source: StocksToTrade

Pay attention to INDO again today!

And keep an eye out for any other low-float runners in the oil & gas sector.

Your Live Market Updates

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  • INDO could be the play to make today.
  • HUSA could push higher too.
  • We might see another opportunity on a different oil & gas stock.
  • It’s also possible the oil & gas sector takes a break today and we see a resurgence of AI and biotech plays.

We have to trade what’s hot.

Most new traders have no idea what they’re looking at when the market starts to move.

Join our live streams this week and I’ll point it out.

I’ll see you there,

Cheers.

*Past performance is not indicative of future results.

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”