Traders are creatures of habit.

The best traders are exceptionally good at spotting trends early.

For example, stay-at-home stocks in 2021 were popping off, energy companies in 2022 were all the rage, and AI-related firms dominated in 2023.

However, the run in AI stocks is probably set to pause soon after the massive rally we’ve witnessed in mega-cap tech stocks.

You see, when the AI trend was just emerging, all a company had to do was mention the word AI in its press release, and the stock had a good chance of ripping higher.

But because the AI trade has gotten heavy…you’ll need more than just the mention of AI to push your stock up.

In fact, yesterday, a little-known software stock exploded by more than 100% intraday.

Why did this “AI stock” take off when most of the market was weak?

It all has to do with something they did last week.

Mixing this catalyst with AI could be the next winning combo.

What Caused This Stock To Explode Yesterday?

AI has turned investors optimistic about the future. And while we might see a mild recession in the economy, the bulls are running the show on Wall Street.

But just because a company mentions AI in its press release…it doesn’t mean it’s a lock that the stock will rise.

After all, we are several months into the AI hype train.

But that didn’t stop WeTrade Group Inc. (WETG) from blasting off yesterday…shares went from $8.44 (Tuesday’s closing price) to a high of $23.16…

What was the catalyst that set it off?

WeTrade Group Inc. Launched Large-scale Language Processing Models To Increase Product Applications In The Field Of Artificial Intelligence

Pretty basic, right?

I think so…and if that’s the only thing the company had going for it…then I think it wouldn’t have rallied as hard as it did.

However, I believe the press release the company sent out last week made WETG such a hot ticker.

Here’s what the company released on June 8th:

WeTrade Group Inc. (WETG) will affect a one-for-one hundred eighty-five (1-185) reverse split of its Ordinary Share. The reverse stock split will become effective on Friday, June 9, 2023. The CUSIP number will change to 961884202 in conjunction with the reverse split.

Wow…

A 1-185 reverse stock split.

That means for every 185 shares you own, you’ll receive one. The stock price is adjusted so you don’t lose money from the split.

But what it does do…is it reduces the float.

In other words, the reverse stock split dropped the float to somewhere around 400K – 600K shares. The exact number varies depending on the source you use, but regardless, it’s super low.

Size Matters

You might not have thought much about it if you just read the headline in WETG yesterday.

After all, every company trying to pump their stock price up is coming up with AI press releases.

However, WETG was a juicy play because of the limited supply of shares.

Economics 101 teaches us that if supply is low,…and demand is high…prices must go up.

And that’s exactly what happened in WETG.

Source: StocksToTrade Breaking News

If you had StocksToTrade Breaking News, you would have caught the news headline early…

And if you were a good student who studies…then you would have been ready to pounce on the trade knowing how limited the supply of shares was.

Bottom Line

If you want to take your trading to the next level then you have to be constantly curious.

Ask yourself…

• Why is this stock moving the way it is?
• Is there a theme or trend in the market that’s working/isn’t working?
• What are the makeups of good and bad trade in this market?
• Should I be trading aggressively or passively?

Come up with your own questions…and try to figure things out.

But you don’t have to do it alone.

I am working with my students daily, pointing out where I see the best action and warning them of any dangers I see.

My stock trading mentoring program has helped develop over two dozen millionaire traders.

If you’d like to learn more about it…and see if you’re a fit…THEN CLICK HERE TO GET STARTED.