The biggest trade setups of the week are happening right now.
We’re in for a volatile couple of days…
Here’s why:
- 4 of the Mag 7 announced earnings last night, Wednesday.
- The Fed announced its interest rate decision last night, too.
The market held its breath earlier this week as we approached these key catalysts.
And now that the beans are spilled… It’s time to ride some giant beanstalks into the clouds.
Don’t get ahead of yourself…
Remember what happened to Jack when he climbed a beanstalk into the sky. He just barely made it down before the giant ate him.
Don’t stress about the man-eating giants in the market.
Follow my process instead.
Where To Look
When the market is volatile, like it is right now, we’re bound to find solid trade setups.
These plays exist whether the market is up or down. It’s the volatility that matters.
And you can find these plays all on your own.
You just need to know where to look…
A Scan For Stock Spikes
As traders, we need to filter the thousands of stocks that move every day.
It’s impossible to look at every ticker and still show up in time to make a trade.
The scan I’m about to share is built around a simple goal: find real stocks, with real volume, that are moving in the right direction.
And the parameters are straightforward.
- The share price has to be above $10 but below $200.
- Below $10 and you’re in penny stock territory: thin volume, wide spreads, no options chains. Above $200, and the contracts get expensive fast.
- The stock needs to be up at least 1% on the day.
- In a volatile market like this, any stock grinding higher is worth a look. That 1% minimum move cuts out the noise and allows us to focus on bullish strength.
- Volume has to be at least 5 million shares.
- Volume acts as our liquidity. It tells us that real money, not just a handful of retail traders, is behind the move. Without it, a spike is just a spike.
This is the scan as it shows up in StocksToTrade:
Sometimes I’ll trade stocks that don’t meet this criteria perfectly.
This scanner is just a base to give me a good idea of the strongest setups.
Until you get more comfortable in the market, stick to the scan I outlined above. Once you gain more experience, you can try to trade other types of stocks.
My Watchlist
I ran this scan on Wednesday, April 30, right before the Mag 7 earnings announcements and the Fed’s interest rate decision.
Here are the top three stocks I’m watching to end the week:
- MaxLinear Inc. (NASDAQ: MXL)
- This is a semiconductor stock that announced earnings on April 23 and surged to new 52-week highs.
- Extreme Networks Inc. (NASDAQ: EXTR)
- This is an AI-related stock that offers cloud-connecting services. The company announced earnings on April 29 and spiked toward the 52-week high.
- Intel Corporation (NASDAQ: INTC)
- This is another semiconductor stock that announced earnings on April 23. It surged to new 52-week highs as well.
Here are their respective charts:
Notice all three of these stocks are related to AI, and as a result, they’re related to the Mag 7 as well.
The earnings announcements from yesterday WILL impact these charts.
Pay attention to the larger tech/AI narrative, and look for intraday support and resistance.
These beanstalks are flying higher. And I’m ready to hop in when I see a textbook setup.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
