Hey, Traders,

Earlier this week, I locked in about $200,000 on a stock most traders had already written off, and yes, I’m still totally stoked about it. 

You might even say I hit the Jack-pot! 

So, if you’ll indulge me while I do another victory lap, I’ll tell you exactly how I pulled it off. 

But first, some background:

This particular chart was the kind that usually makes people run the other way. 

The stock in question was at 52-week lows and had been bleeding out for weeks, with volume drier than an old carcass and crickets chirping in the Twittersphere. 

Shorts were having a field day betting against it, too. 

If you pulled up the daily chart a few days ago, you would’ve seen a company that looked stuck and not worth a second glance. 

That’s precisely why I love studying stocks in that condition.

When a small cap is sitting at extreme lows like this one was, sentiment gets stretched almost to a breaking point. 

Pretty much everyone who wanted out is already out. 

And that’s when the magic happens.

Lighting the Fuse

After market close Monday, Quince Therapeutics, Inc. (NASDAQ: QNCX) dropped a press release that changed the whole narrative. 

The small biotech company had hired LifeSci Capital as its exclusive financial advisor for a strategic restructuring.

To newer traders, that might sound like boring corporate-speak, but to me it’s a signal that a company’s management is looking for a boost.  

It might come in the form of asset sales, partnerships, mergers, or recapitalizations, but whatever it is, it’s definitely a catalyst.

Sure enough, by the next session, QNCX had exploded, running roughly 650% into after-hours trading:

One day the stock was hugging 52-week lows; the next, it was one of the biggest movers in the entire market — and there was nothing random about it. 

‘Aggressive and Consistent’

When news hits a stock that’s been crushed for months, as this one was, traders will scramble to reprice it. 

As shorts rush to cover and momentum traders pile in, liquidity expands quickly and the tape begins moving urgently.

On Tuesday, the intraday action was exactly what I look for in these situations. 

As traders digested the announcement, volume surged and the stock drove through key whole-dollar levels with convincing strength. 

Buyers were aggressive and consistent.

That stair-step action told me demand for QNCX was overwhelming the supply of available shares.

That made my thesis pretty simple. A deeply oversold small cap with real corporate news can produce a violent upside move once volume comes in and key levels are reclaimed. 

I didn’t have to guess at all. The chart and tape were confirming my assumptions in real time.

A Real Highwire Act 

Even so, execution still mattered a lot for this trade. 

As spreads tightened and liquidity improved during the spike, I was able to size in without chasing blindly, but it’s not something I would have attempted without enough practice. 

I added into strength as the stock proved itself and sold into strength as momentum expanded because I’d done it before. 

The motions were familiar. 

You have to remember that while parabolic moves can stretch far beyond what seems reasonable, they can also fade quickly once buyers are exhausted. 

I had to account for both possibilities before making my move, meaning it was a calculated risk.

The six-figure gain was exciting — no doubt. 

But what matters more to me is the structure behind it: fresh 52-week lows, a credible announcement, explosive volume, and clear intraday and daily reclaim levels.

That combination doesn’t show up every day, but when it does, I’m ready to meet it with preparation and skill.

I’m not flying blind or trying to pin the tail on the donkey. 

I know what to look for, and most of the time, I know just how to get there without blowing up.

Stay focused,

Jack