We’re headed straight into a market holiday.
Which means today is kind of like a Friday.
And there’s a lot of volatility to watch as we approach the final hours of the trading day.
By the time you read this, the FED will have released minutes from its most recent meeting.
Expect that to act as a catalyst for stocks.
Jerome Powell has a one-track mind when it comes to inflation. And market players should anticipate more interest rate hikes until inflation drops closer to 2 – 3% (currently at 7.7% over the last 12 months).
Last month’s inflation raised prices less than analysts expected. And a lot of people are hoping the FED takes this into account. A smaller interest rate hike could contribute to bullish price action.
Wait for the market to decide how it interprets the news. And play the resulting volatility.
The Next Volatile Runner
To date, the biggest move we’ve seen came from AMTD Digital Inc. (NYSE: HKD).
Nothing else compares. The company IPOed at $7.80 and within a month the share price reached $2,555.
That’s a 32,000% spike.
The main reason why it spiked so high is because the float was so low.
Remember what we’ve been saying about supply and demand … low supply (float) will spike prices higher when demand increases.
And HKD’s initial float was just 16 million shares.
That’s why we mostly focus on low-float stocks. They have a solid history of running and the math makes sense.
Here’s where it gets exciting …
There’s a trader that claims to have found the next big mover. And it hasn’t spiked yet.
We did the due diligence and read his report. It’s a solid idea …
- The stock fills a market gap
- It has a competitive revenue structure
- There’s a billionaire investor
- And it’s got a low float
We can’t share the name of the stock. Sorry, we don’t want to risk getting sued.
Here’s the position you’re in …
You could wait until the price starts spiking and likely your scans will pick it up. There will still be trade opportunities. But you might miss the biggest part of the move because you weren’t prepared beforehand.
At the very least, read the prompt. It’ll push you in the right direction.
Hottest Stocks
Going into the afternoon, pay attention to charts that are green on the day. If it ran this far it can run a little more.
Make sure the float is below 50 million. A float rotation would be wonderful, which means the volume is at least as high as the float.
And there’s got to be a catalyst. Like recent news or a hot sector.
Here’s one to get you started …
NeuroBo Pharmaceuticals Inc. (NASDAQ: NRBO)
- The float shows 3.7 million shares
- The volume is +40 million shares
- The catalyst is a huge former spike in September 2022
Here’s a chart of the price action thus far …
Trade with a plan!
Benjamin Bull
Managing Editor, Dollar Stock Club
