Hey, Traders,

Before you switch to weekend stealth mode, let’s talk about the first green day setup. 

This pattern has been part of my playbook for years, and while it looks simple, it can be powerful when you know how it works. 

A first green day is when a stock has been pulling back, fading, or going sideways, and suddenly we get that first strong up day. 

Ideally, it closes near highs and the volume is elevated. 

That’s the signal momentum might be starting to shift.

It could be a short squeeze, a bounce, or a multi-day run, and sometimes it fizzles, but when the volume is real and the stock breaks out of a range, it’s time to perk up.

Let’s look at a good example.  

Be Alert and Aware

After trading quietly for weeks, Rocket Lab Corporation (NASDAQ: RKLB) began spiking shortly after the market opened Tuesday.

In the following chart, you can see how far it climbed before tapering off: 

Tuesday was a nearly 10% green day for RKLB, with solid volume, and the stock almost reached its 52-week high of $86.25 per share.

The spike was fueled by an $816 million defense deal with the U.S. Space Development Agency (SDA) to build 18 missile-tracking satellites. 

That’s the biggest contract in the company’s history and has established it as a legitimate defense contractor. 

Once the deal was secured, analysts raised price targets for RKLB and upgraded its buy ratings, lending further momentum. 

Catalysts like that can light a fire under a quiet chart, so the key is to spot the shift before everyone else does.

A Learning Opportunity

This pattern works best for me when I’m patient and don’t try to guess the bottom. 

I wait for proof and then look at the chart history and whether volume supports the move. 

If it checks out, I’ll plan for possible continuation the next day.

And when it fails, that’s a signal too. 

I learn from it, log it, and move on. 

The key is to react instead of trying to predict what might happen. 

If you’re newer to trading, my best advice is don’t chase. 

Instead, study moves like RKLB’s. 

Watch what happens after the first green day. 

Does it hold up the next day? Does it gap up, fade, or break out? 

The edge is in seeing the pattern play out, again and again, so you can act faster next time.

I’ve made a lot of progress over the years by sticking to patterns like this. 

The goal isn’t to trade every one; it’s to understand them as they happen, so when the right one shows up, you’re ready.

Stay sharp, 

Jack