Don’t feel bad if you missed the oil sector spike. I missed out on the biggest supernovas too.
If you have no idea what I’m talking about, this chart of Indonesia Energy Corporation Limited (AMEX: INDO) sums it up nicely…
Every now and then, certain market sectors heat up, and traders start to see spikers like INDO.
Maybe you miss the action. That’s never fun. But the good news is that another hot sector is just around the corner.
Here are two I think you should keep your eye on…
My Take on the Next Hot Sector
There’s no guarantee that I’m right, but it’s a day trader’s job to make informed predictions about the future.
And of course I won’t buy every stock in these next two sectors, but I’ll be watching closely for any signs of action.
#1: Shipping
The world’s having a bit of a shipping crisis. There have been supply-chain difficulties for months now, and it’s getting worse. This headline says plenty…
You might be wondering why I’m watching a sector that’s struggling worldwide…
Fear creates volatility. And volatility means a potential to profit. Sometimes the reason a sector spikes isn‘t as wholesome as we’d like. But that’s part of the game.
#2: Mining
During times of high inflation, historically, people turn to precious metals like gold. I read this headline the other day…
The studies are uncertain on whether it’s actually a good investment strategy. But it’s a bit of a self-fulfilling prophecy already.
I’m watching mining stocks because inflation might continue. Who knows? Maybe people will start burying gold bars in their backyard.
How to Find Potential Spikers
Finding the best opportunities isn’t as easy as scanning for every shipping and mining stock out there.
Some will have a better chance of spiking than others. Here’s what I’m looking for…
- Low float — less than 10 million
- History of running
- Below $5 per share
- Sector
Wondering why all those factors are important? Learn what spikes stocks the highest.
Also, I can create a scan on my trading software that will give me a custom list of stocks that meet these criteria. It’s called StocksToTrade …
Start your two-week trial right now.
Gain an edge by watching the right stocks.
Cheers to future sector mania,
Roland Wolf
Editor, The Wolf’s Den
