The market is heating up as Donald Trump begins his second term as President of the United States. Volatility is dominating the market, with low-priced stocks spiking across the board. If you’ve been waiting for the right conditions to trade, this week’s market action offers plenty of opportunities—but only if you approach it with caution and discipline.
Here is my penny stock watchlist for this weekend:
Stock Ticker | Company | Performance (YTD) |
---|---|---|
NASDAQ: QUBT | Quantum Computing Inc | - 33.80% |
NASDAQ: CLEU | China Liberal Education | + 97.17% |
NASDAQ: DWTX | Dogwood Therapeutics Inc | + 500.40% |
NASDAQ: ASST | Asset Entities Inc | + 100.00% |
NASDAQ: INVO | NAYA Biosciences Inc | + 36.58% |
The other big news is that $15 million trader Jack Kellogg also held his first-ever pre-inauguration briefing. He’s already made $2.3 million in profits in the 10 weeks since Trump was elected…
He’s got some big ideas on how to make the most of the upcoming hot market…
Get Jack’s NO-COST inauguration idea here!
Top Penny Stocks to Watch: January 24, 2025
My top penny stock recommendations to watch this week are:
- NASDAQ: QUBT — Quantum Computing Inc — The Quantum Computing Sector Leader on the Rebound
- NASDAQ: CLEU — China Liberal Education — The Education Stock Riding AI Momentum
- NASDAQ: DWTX — Dogwood Therapeutics Inc — The Biotech Stock With Explosive Potential
- NASDAQ: ASST — Asset Entities Inc — The Social Media Penny Stock With a New Altcoin
- NASDAQ: BTCT — BTC Digital Ltd — A Volatile Play on Bitcoin’s Momentum
This week’s volatility extends far beyond Trump-related stocks and assets. Last week, we witnessed massive spikes in unrelated plays like Phio Pharmaceuticals Corp. (NASDAQ: PHIO). PHIO spiked 470%* in one day, from $1.69 to $9.79, fueled by positive clinical trial results. The takeaway? Traders should focus on bullish news catalysts and low-float stocks for potential opportunities, regardless of sector or political ties.
Here’s my trade on PHIO:
The last few sessions have been a perfect example of why I trade penny stocks. Where else can you see moves like this?
Here’s some background on penny stocks:
- What is the most promising penny stock?
A stock with a lot of volatility like Quantum Computing Inc (NASDAQ: QUBT) is a good bet for the most promising penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.
- What are the top 3 penny stocks to buy now?
My top 3 penny stocks to buy now (as long as their price action is strong) are Quantum Computing Inc (NASDAQ: QUBT), Dogwood Therapeutics Inc. (NASDAQ: DWTX), and BTC Digital Ltd (NASDAQ: BTCT).
- Which penny stocks have a “Strong Buy” analyst rating?
Analysts don’t give any penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.
Let’s get to the picks …
1. Quantum Computing Inc. (NASDAQ: QUBT) — The Quantum Computing Sector Leader on the Rebound
Quantum Computing Inc. has been a top pick for traders targeting volatility in the tech sector. After a massive 1,800%* spike in late 2024, QUBT’s momentum cooled following comments from NVIDIA CEO Jensen Huang about the distant commercialization of quantum computing.
Check out my Quantum Computing Stocks Watchlist here!
This pullback creates new trading opportunities. QUBT remains a speculative favorite due to its sector leadership and prior runs. Watch for signs of price consolidation and breakout patterns. This stock’s low float amplifies volatility, making it a prime candidate for short-term trading setups.
2. China Liberal Education (NASDAQ: CLEU) — The Education Stock Riding AI Momentum
CLEU, like other Chinese education stocks, has gained traction following Beijing’s rollback of restrictions on for-profit tutoring. The recent surge in AI-powered learning tools across the education sector has also played a major role in boosting stocks like TAL Education (NYSE: TAL) and CLEU. This shift toward AI-enabled solutions represents a fresh growth driver in a previously constrained industry.
CLEU remains a speculative opportunity for traders. While it trails its larger peers like TAL and New Oriental Education (NYSE: EDU), its low float and smaller market capitalization make it more volatile. Keep an eye on sector-wide momentum as well as technical levels that could indicate breakout setups. Support zones established during the broader education sector rally can provide lower-risk entry points, while resistance levels offer potential profit targets.
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3. Dogwood Therapeutics Inc. (NASDAQ: DWTX) — The Biotech Stock With Explosive Potential
DWTX skyrocketed 900%* on January 23, delivering one of the most dramatic spikes in the market so far this year. Biotech stocks often thrive on news-driven catalysts, and DWTX’s move is a prime example of traders piling into momentum. While such massive spikes can be enticing, they also carry significant risk—sharp reversals are common in this niche.
Check out the latest biotech runners here!
For traders, DWTX highlights the power of volume-driven breakouts and weekend inefficiencies. This stock is a strong candidate for Friday-to-Monday trade setups, where weekend news and stacked orders often drive price action. Look for consolidation at support levels and potential breakouts at prior resistance points. Use clear stop-loss orders to manage risk, as volatile moves like this can turn quickly.
4. Asset Entities Inc. (NASDAQ: ASST) — The Social Media Penny Stock with a New Altcoin
ASST spiked 210%* following the announcement of a new altcoin launch, echoing the hype surrounding Trump’s $TRUMP crypto token. This stock is a classic example of trading the news and momentum rather than the asset’s long-term fundamentals.
The crypto crossover trend remains strong, and ASST’s volatility offers short-term trading opportunities. Monitor for follow-up catalysts or signs of consolidation near support levels for potential breakout setups.
5. BTC Digital Ltd. (NASDAQ: BTCT) — A Volatile Play on Bitcoin’s Momentum
Bitcoin’s rally under the “Crypto Emperor Trump” has reignited interest in blockchain-related stocks, including BTC Digital Ltd. BTCT’s history of multi-day spikes makes it a prime candidate for momentum trading.
Check out my Crypto Penny Stocks Watchlist here!
Traders should watch for price action aligning with Bitcoin’s movements. With its history of dramatic surges, BTCT offers ample opportunities for quick trades. Keep this stock on your radar as the crypto market responds to policy shifts under the new administration.
* Past performance does not indicate future results.
What Is a Penny Stock?
Penny stocks are defined as stocks trading below $5 per share, often tied to small companies with limited market capitalization. They trade on major exchanges like the NASDAQ or OTC markets.
These stocks are known for their extreme volatility, offering high-risk, high-reward opportunities for traders. Unlike traditional stocks, penny stocks aren’t long-term investments—they’re ideal for short-term strategies due to their rapid price swings.
Penny Stock Trends Under Trump
President Trump’s return to the White House has supercharged several sectors. Crypto tokens like the “Crypto Emperor Trump” ($TRUMP) memecoin surged before Trump took office, as Bitcoin reached a new all-time high over $109,000!
Trump’s policies are already influencing the market, and traders are watching to see how key sectors respond. Here’s where I’m focusing my attention:
- Financials: Big banks stand to benefit from deregulation and potential M&A activity. With CEOs at major institutions already expressing optimism, this is a sector worth keeping an eye on.
- Technology: Trump’s push for AI and reduced regulatory oversight is driving momentum in tech stocks. Companies like Amazon and Apple are investing heavily, which could create trading opportunities in this space.
- Industrials and Airlines: Smaller players in these sectors might see growth opportunities under Trump’s pro-business policies. But watch for potential challenges, like increased costs due to tariffs or policy shifts.
Not every sector will thrive. Automakers and construction companies could face headwinds from policy changes, so it’s crucial to remain selective about where you trade.
Key Takeaways for Traders
- Focus on Low Floats: Stocks with limited shares available for trading are more likely to experience sharp spikes when demand increases.
- Trade the Momentum: Don’t fall in love with the story behind a stock. Use technical analysis to time your trades and avoid chasing.
- Stay Disciplined: Penny stocks can be unpredictable. Stick to your trading plan and cut losses quickly.
With Trump’s policies fueling market optimism, now is an excellent time to refine your strategy and prepare for more post-inauguration volatility. Stay alert, trade smart, and make the most of this unique market environment.
This is a market tailor-made for traders who are prepared. Trump’s inauguration is creating fresh volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.
These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.
I recommend that you pay close attention to the first days of this possibly historic bull market.
If you want to know what I’m looking for—check out my free webinar here!
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