Trading Lesson of the Week

• October 11, 2026
• SKYA

In This Week’s Issue:

• Upcoming Events – Free Classes to Make You a Better Stock Trader
• Market Outlook – Oversold
• This Week’s Market Minutes video – The Three Stock Trading Strategies You Must Know
• Trader Training – Master These Three Simple Trading Strategies
• Strategy – Abnormal Gainers

Upcoming Events – Free Classes to Make You a Better Stock Investor

Coming up later in October, a 4 part series to teach you how to analyze any stock in seconds, identify quality trading and investing opportunities and utilize the powerful tools of Stockscores. These classes are free to attend and all attendees will receive an electronic copy of my sold out book, “The Mindless Investor”

CLICK HERE TO REGISTER ON STOCKSCORES.COM

My Simple Approach to Pick Winning Stock Trades

Tuesday, October 27, 2026 6pm PT, 9pm

Find the Best Stocks, Manage Risk, and Build Wealth

Wednesday, October 28, 2026 6pm PT, 9pm ET

Winning Day and Swing Trading Strategies for Consistent Income

Thursday, October 29, 2026 6pm PT, 9pm

How the Stockscores Tools and Education Can Help You Make Stock Market Profits

Saturday, October 31, 2026 9am PT

Market Outlook – Oversold

It is quite rare for the Sentiment Stockscores to go below 30 for a stock market index but that is where it is for the Russell 2000 index ETF, IWM.

The last time it got this low was in March of 2025. It then started a strong upward trend that went from $180 to $260 in about a year. It also hit this low level late in 2023 before going in to a strong upward trend that lasted most of 2024.

I think the market is setting up for another strong price rally but the timing will depend on when it can break its daily downward trend line that has been in place since mid-August. This could happen any day, I will update here and in the weekly Market Minutes video when it does.

This Week’s Market Minutes Video – Will October Bring a Stock Market Crash?

There are three stock trading strategies that every trader and investor must know. Stocks move in predictable cycles, especially when they are outperforming the overall market. In this video, I show these three strategies, provide my analysis of the overall markets and whether a stock market crash is a concern and then look at the trade of the week on YMAT.

CLICK HERE TO WATCH ON YOUTUBE

https://youtu.be/Alhnqjhe_M0

Commentary – Master These Three Simple Trading Strategies

Successful stock trading is not about predicting where prices will go. It is about recognizing chart patterns that signal opportunities to buy stocks with strong upward momentum.

There are three important trading strategies that work across all time frames, whether you are day trading, swing trading, or investing for the long term.

1. The Abnormal Break from Low Volatility

Stocks often trade quietly in narrow price ranges before suddenly coming alive with an abnormal price gain accompanied by unusually high trading volume.

This breakout is typically driven by a catalyst such as an earnings announcement, positive news, a developing trend, or increased investor attention.

The opportunity: Buy the initial breakout from a period of low volatility when price and volume demonstrate that something significant has changed. This is often the beginning of a new upward trend.

2. The Momentum Pullback

Strong stocks rarely move straight up. As prices rise, some investors take profits, causing temporary pullbacks within the larger upward trend.

These pullbacks create opportunities to enter a strong stock at a more favourable price rather than chasing it after a significant gain.

The opportunity: Identify stocks in established upward trends, wait for a pullback toward the rising trend line, and buy when the stock breaks the downward momentum of the pullback.

This strategy takes advantage of short-term profit-taking without losing sight of the stock's underlying strength.

3. The Continuation Break

After a significant advance, strong stocks will sometimes move sideways as buyers and sellers reach a temporary balance. This consolidation allows the stock to establish a new price foundation.

When the stock eventually breaks above the resistance of this consolidation, particularly with increased volume, it can signal the beginning of another upward move.

The opportunity: Buy the breakout from a sideways consolidation pattern, such as a rectangle, after the stock has already demonstrated strong upward momentum.

The Common Theme: Trade Strength, Don't Chase It

All three strategies focus on recognizing and taking advantage of strong buying interest in the market. The key is understanding where a stock sits in its price trend and identifying the chart patterns that offer attractive entry points.

The same patterns appear on one-minute charts and weekly charts, making these strategies applicable to virtually every trading style.

The goal is not to buy stocks simply because they are going up, but to recognize when the probability of continued strength is favourable and the potential reward justifies the risk.