Hey, Traders.
Lately, the market’s been wild.
Some of the hottest stocks from just weeks ago are now down 40% … even 50% from their recent highs.
It’s kind of shocking how fast things can turn.
But the silver lining is this — that kind of drop can actually set up the best opportunities.
Beaten-down stocks can bounce, and when they do, those bounces can be fast and strong.
Let’s walk through some of the best setups I’m watching right now, with one key example from each group.
Here’s the breakdown.
Bitcoin-Crypto Bounce
Let’s start with Bitcoin-related names.
These things were flying just weeks ago, but now they’re down hard. (Think CLSK, APLD, and IREN, among others.)
But one to watch closely is Bitfarms Ltd. (NASDAQ: BITF), which ran hard when Bitcoin was hot, but it’s now trading well off its highs.
The whole sector is quiet right now — and that’s exactly why this is worth watching.
If BITF finds a floor and puts in a strong green day, traders will notice.
Don’t chase, but if volume shows up, it could be a great bounce play.
Quantum Stocks: Not Forgotten
Another group that’s been absolutely crushed lately is quantum computing (QUBT and IONQ, for example).
Let’s highlight D-Wave Quantum Inc. (NYSE: QBTS).
This thing got hammered, falling fast from its highs.
But quantum tech is still a hot theme, so once the bleeding stops and QBTS starts showing strength again, you could see a really sharp bounce.
Keep an eye out for volume and a strong first green day.
Relative-Strength Standout
Not everything is down bad.
Some names are actually holding up — and Cypherpunk Technologies Inc. (NASDAQ: CYPH) is a great example.
This stock is holding strong while others have broken down, and that can create pressure for shorts who expected a drop.
If CYPH opens weak but then reverses and goes green (r/g move), it could spark a breakout.
It’s already trending well, so now it’s about finding the right entry if the move comes together.
Low-Float Squeeze Watch
Want something a little spicier?
Keep your eyes on Galecto, Inc. (NASDAQ: GLTO).
The key setup to watch here is a weak open followed by a red-to-green move, especially if it pushes above $30 per share.
That kind of move can trap short sellers and trigger a quick spike higher.
It’s not one to jump into blindly, but if it starts building above that $30 level with volume, things could get exciting fast.
Consolidation Setup
Not every trade is about big bounces or squeezes.
Sometimes the best plays come from clean consolidation.
Cambium Networks Corporation (CMBM) is one of those quiet setups that’s been holding steady, building a base.
If it keeps tightening up and starts to break out of range, that could trigger a clean technical breakout.
It’s a simple setup that just needs patience.
Around We Go
Yes, the market’s taken a hit lately, and a lot of former runners are way off their highs.
But that’s not all bad — it just means we might be nearing the next round of opportunities.
Whether that involves bounce plays, breakouts, or short squeezes, these are the kinds of setups that traders love.
Keep your eyes on the charts, manage risk, and stay patient.
The next big move could be right around the corner.
Stay sharp,
Jack Kellogg