Tim Sykes Daily

It happened again. Last Friday (July 24), I bought 3,000 shares of a stock at 3:47 p.m ET. Then, aside from keeping an eye on it to make sure it didn’t drop below my risk level, I pretty much stopped thinking about it.

I know the markets are down and the plays are choppy. It’s also the middle of summer. You can’t expect too much (there’s definitely a seasonality to trading). Summers are slower. Go outside. Or, stay inside and study more.

We’re STILL seeing giant supernovas — massive, explosive trading patterns where a low-priced stock can SOAR 100%, 500%, or even 2,000% fast. The moves are just insane. Last Monday, Zhengye Biotechnology Holding Limited (ZYBT) did the seemingly impossible, going from $1 to the $11s…

It’s a loaded question, right? Not every weekend play is gonna work. Still, I’ve been trading this pattern for over 25 years and it just keeps happening. And when you get it right, it has the potential to be a solid win.

I used to think I had to time breakout trades perfectly. But it’s easier than that. The best breakouts I’ve ever traded were OBVIOUS (early). They left clues: clear levels, tight price action, big catalysts, steady volume. You have to know what to look for while the pattern is still forming.