There’s a Tech Rotation in the Market Right Now

Written by Timothy Sykes

Updated 2/5/2026 2 min read

There’s a Tech Rotation in the Market Right Now Thumbnail

I’m watching a monster multi-day runner right now. And it’s eyeing another leg higher.

It’s a small-cap tech stock.
It already spiked 540%* to end January.
The float is only 16 million shares.
And today it’s rallying higher after a multi-day consolidation.

The $0.50 level is key for this move.

If the stock can spike past $0.50, it would all-but confirm a surge higher, past the $0.70 highs from January 27.

On the chart below of X3 Holdings Co. Ltd. (NASDAQ: XTKG), every candle represents one trading minute:

XTKG chart multi-day, 1-minute candles Source: StocksToTrade

Larger tech stocks are under pressure right now.

The most recent gut punch to the sector:

Anthropic just launched a new AI tool that could replace multiple existing software services in the market. Effectively sucking the wind out of the sails of countless software businesses.

Anthropic’s new tool offers tailored AI for industries like sales, finance, legal, and data marketing.

The money that pushed big tech higher in 2023, 2024, and 2025 … It’s under pressure right now. And it’s shifting toward small-cap stocks that have more opportunity to grow.

I’m not looking to invest in XTKG. But I’ll gladly trade the momentum caused by panicked investors who are searching for the next hot tech bargain.

Small-cap stocks like XTKG love to follow my trade patterns. And when market hype is at a peak, these patterns show up more clearly on the chart.

Emotions are high, people behave predictably, and it creates perfect trade setups for me and my students.

Learn my entire strategy, every angle I use to trade, for FREE, in just two days …

On February 13 and 14, I’m joined by two millionaire students, Matt and Bryce, to teach new traders this process.

>> Claim Your Free Spot Now <<

Most people go their whole lives without realizing the insane opportunities in the market.

Take your life into your own hands. Show up for the bootcamp. Work toward the future you want.

Cheers,

Tim Sykes

*Past performance does not indicate future results

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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.

* 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”