Three Sectors. Three Wins. One Lesson.

Trade of the Day Wake-Up Watchlist

"The market doesn't care what strategy you use. It only cares that you use the right strategy for the right setup at the right time."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

While you're digesting holiday meals and the market's sleepwalking through end-of-year volume, I keep thinking about one day back in May.

Not because it was our biggest day ever (we've had plenty of good days).

But because of what those three different winners taught me about how markets really work in 2025.

When We Hit the Trifecta

May 14th started like any other trading day. By close, our readers had banked gains across three totally different strategies:

SOUN: +40.4% on an AI short squeeze ABSI: +20.9% on biotech innovation Dominion Energy puts: +26.2% on political headwinds

Same day. Three sectors. Three completely different approaches.

Here's what happened – and more importantly, what I learned from watching how these trades played out over the next eight months.

Winner #1: SOUN's 40% Short Squeeze Explosion

Back in May, SoundHound AI (SOUN) was sitting on a powder keg. Short interest at 32.73%. AI audio recognition company with real technology. All it needed was a spark.

When SOUN broke out of its range, I alerted our War Room: "LIGHTLY buy shares for best prices available."

Why "lightly"? Because even with explosive potential, position sizing on speculative plays is everything.

The result: 40.4% in one day as shorts scrambled to cover.

What happened next: SOUN continued its AI run through summer, hitting highs near $10 before pulling back. The short squeeze was real, but the follow-through required staying disciplined about exits.

The lesson: Short squeezes deliver fast money, but they're sprints, not marathons. Take profits when the crowd gets euphoric.

 

Winner #2: ABSI's 20.9% AI-Biotech Innovation Play

SPONSORED

Controversial Law (S.1582) Unleashes America’s New Money

A brand-new form of government-authorized money is about to be unleashed on America… a so-called Dollar 2.0.

Treasury Secretary Scott Bessent says the Dollar 2.0’s value could "greatly exceed" $2 trillion by 2028…

And it’s also opened up a colossal wealth-building opportunity.

As you can see here, Investors who position themselves now could see gains as high as 40X by 2032.

But the window to act is closing fast… as the next major money minting event is happening.

Go here now to make sure you get ahead of it.

This one was Karim's spot back in January. While everyone was chasing the obvious AI plays, he found Absci Corporation (ABSI) – a generative AI biotech company applying artificial intelligence to drug discovery, specifically antibody design.

The catalyst that caught Karim's attention? AMD's $20 million strategic investment, plus a partnership to deploy AMD's Instinct™ accelerators to power ABSI's AI drug discovery models – including their proprietary antibody design platform.

With three promising candidates in their pipeline and a relatively small market cap, the risk-reward setup was compelling.

Karim recommended buying at or under $2.95 in March. Exit after earnings catalyst: $3.55. Clean 20.9% gain.

What happened next: ABSI became one of the better AI-biotech stories this year, running from our $2.95 entry to over $7 by fall. The AMD partnership proved to be just the beginning.

The lesson: The better AI plays aren't always the obvious ones. Sometimes it's the companies using AI to revolutionize old industries like drug discovery.

Winner #3: Dominion Energy's 26.2% Political Headwinds Play

This one was pure political trading. Dominion Energy had invested $10 billion in wind projects. Political winds were shifting. Charts showed resistance at $57.

The play: Buy Dominion May 55 puts.

Two weeks later: 26.2% gain as regulatory risks hit the stock.

What happened next: The regulatory pressure on renewables continued through the year. Dominion's wind investments became an even bigger liability as energy policy shifted.

The lesson: Political catalysts move slower than earnings, but they're more predictable once you spot the trend.

Some Lessons We Learned In 2025

Looking back, these three winners represent what worked consistently in 2025:

Diversification isn't just about sectors – it's about strategies. We had momentum, fundamentals, and politics all working in one day.

Catalysts come in different flavors. Short squeezes explode fast. Innovation plays build over months. Political moves grind steadily.

Position sizing determines everything. Same setup, different size, completely different outcome.

Good opportunities hide in plain sight. SOUN was on our free watchlist. ABSI was overlooked AI. Dominion's problems were obvious if you looked.

Your Action Plan

As we head into the new year, I'm watching for the same pattern: multiple strategies across different catalysts.

The fundamentals haven't changed: AI moving into new sectors like biotech, political uncertainty around regulations creating opportunities, and high short interest setups waiting for the right spark.

The market doesn't care what strategy you use. It only cares that you use the right strategy for the right setup at the right time.

That's what one solid day in May taught me. That's what will drive profits in 2026.

Ready to find the next opportunities? Join us in the War Room where we're already spotting January's setups.

SPONSORED

Can You Spot The Spike?

WAR Volume
 

If so... you could spot BIG earnings moves... BEFORE they happen...

And target 293% in less than 24 hours...

If the stock moves up OR down... these trades win BIG!

Discover The Pre-Earnings Spike

Subscribe to receive free email updates:

0 Response to "Three Sectors. Three Wins. One Lesson."

Post a Comment