• Why stocks without news can still run. But should you trade them?
• Check out this 200% spiker on no news. Find out why it was running … 
• Tim Sykes has never done THIS in 20+ years of trading … until now. 

Have you seen stocks spiking without news? We need to talk about what that means. And whether you should trade them.

It can be easy to make a mistake in the stock market. That’s why It’s so important to follow the rules and play the right stocks.

Let me tell you what I mean…

How to Join the Trading Minority

I learned to day trade from Tim Sykes. It took a ton of hard work to make it where I am. But it’s not impossible.

Day traders need to be highly disciplined. Remember that 90% of traders lose. The odds are against you.

How did I become part of the 10% that profits? By focusing on the best plays. All the stocks I trade have a few things in common.

• High volume
• News/catalyst
• Low priced

If you watch the market regularly, you may start to see stocks run without news. Or maybe it’s crappy news but it spikes anyway.

When is it safe to profit off this volatility? Keep reading to find out.

A Chart Example

Take a look at this chart of Insignia Systems Inc. (NASDAQ: ISIG) from December 6, 2021. It popped up after the company said it would explore ways to increase shareholder value.

Obviously, you can tell it went on a bit of a run. But this volatility can easily paint the wrong picture if you don’t know what to look for.

Bottom line: The catalyst was trash. That’s why I didn’t touch it.

Remember when I said earlier that stocks have been running without any news? This is what I’m talking about.

I’m looking for news that shows there’s value added to the company. Like new contracts or business deals. An acquisition would be better than this.

Basically, here’s what ISIG is saying about shareholder value: ‘We’ll think about it.’

Now you might be thinking … 

Why Did It Spike?

Don’t worry, there’s an easy explanation — it was a short squeeze.

Traders could tell that the stock was up on sketchy news. So they decided to short the weak spike in the morning.

But unfortunately, everyone had the same idea. And when there are too many shorts on the same stock, a short squeeze will push it higher.

So what’s the deal here? Can we predict short squeezes? Are they profitable?

Predicting Short Squeezes

It’s not tough to predict short squeezes. These days if you see a stock going parabolic without news, it’s probably a short squeeze.

Some people try to look at the short percentage of the stock to try and find squeezes beforehand. But that data’s usually out of date.

I think that squeezes are predictable but not reliable.

Profitable?

They certainly can be. But because they’re so unreliable, I wouldn’t try it.

You never know how high the stock will go. The catalyst is pure hype and panic. That’s a dangerous combination.

Remember, these penny stocks are junk anyway. Try not to buy junk with junk news.

My best advice is to sit back and watch it all unfold. There’s a lot you can learn from squeezes, even without trading them.

Final Thoughts

I know it’s tempting to buy a stock that looks strong. But do me a favor — go check out ISIG’s chart the next day. It might surprise you to see how it opened.

Please don’t get sucked into these dangerous stocks. It’s for the best. Start focusing on the right plays. That way you’ll have a better chance of success.

Pick your battles wisely, 

Roland Wolf

Editor, The Wolf’s Den