Why This Quantum Computing Stock Could Surge in January
Hey Gang,
Can you believe it’s already 2025? I don’t know about you, but I’m incredibly excited about the opportunities ahead.
Before we dive into today’s trade setup, I want to take a moment to thank all my Profit Surge Trader members for an incredible 2024.
We closed out the year with a 72.65% Win Rate and Averaged 28.2% Returns on our winners.
That’s the power of having a proven system and sticking to it.
But enough about the past – let’s talk about what’s happening in the markets right now and why I’m seeing one of the most exciting setups of the new year in a quantum computing stock that’s caught my scanner’s attention.
Current Market
While year-end trading typically winds down quietly, 2024’s finale proved anything but calm.
Markets unleashed unexpected volatility, including one of the largest single-day percentage drops of the year. Just a week before Christmas, the S&P 500 plunged 3%, closing at its absolute lows. A brief bounce the next day quickly fizzled out.
Despite a modest pre-Christmas rally, markets drifted lower as we approached the New Year. This didn’t surprise me – my research on recent years suggested the traditional ‘Christmas Rally’ often disappoints.
However, I saw this pullback as a perfect opportunity to spot potential A+ setups. When a stock maintains its ground or even advances while the broader market stumbles, it signals robust buying pressure – what we call relative strength.
These are exactly the kinds of stocks that tend to surge when the market recovers, powered by both their inherent strength and overall market momentum.
The key is identifying stocks with compelling narratives that aren’t tightly correlated to major indexes. One company in particular stood out from the pack – Quantum Computing (QUBT).
Quantum Computing (QUBT)
QUBT caught my attention after my S.A.M. Scanner flagged an unusual pattern – while the S&P 500 dropped 3% in a single session, QUBT actually closed higher. This kind of relative strength often precedes major moves.
Additionally, they just landed a major contract with NASA’s Goddard Space Flight Center in mid-December. This isn’t just another press release – it’s a significant validation of their quantum computing technology.
What makes this particularly interesting is the timing. With major tech companies and government agencies racing to develop quantum computing capabilities, NASA’s stamp of approval gives QUBT significant credibility in this emerging space..
Looking at the 130-minute chart, we can see a perfect TPS setup forming:
- Trend – A strong upward movement that started in December following the NASA news.
- Pattern – Price is consolidating in a clear triangle formation with the ranges narrowing every day.
- Squeeze – Notice those red dots at the bottom? That’s our squeeze indicator showing compressed volatility – like a spring coiling for its next move.
But here’s what really excites me about QUBT…
The stock has a 12.85% short float. That means a significant number of traders are betting against the stock. When bears get caught on the wrong side of a trade, they have to buy back their shares to cover their positions, creating what we call a “short squeeze.”
With QUBT demonstrating incredible relative strength during the recent market pullback, these short sellers are likely getting nervous. While the S&P 500 was hitting new lows, QUBT held its ground and even pushed higher.
This combination of strong technicals, a major fundamental catalyst, and potential short-squeeze conditions makes QUBT a prime candidate for an explosive move higher.
Now, the 130-minute chart tells us this setup could take several weeks to fully develop. Fortunately, QUBT offers weekly options with decent liquidity, helping us avoid those frustrating wide spreads that plague many lower-priced stocks.
Given the expected timeline, I’m targeting expirations towards the end of January. And since the stock trades around $16, the options are relatively inexpensive, giving us a favorable risk/reward setup.
Turn Market Uncertainty Into Opportunity
QUBT represents a perfect storm of opportunities – quantum computing validation from NASA, strong technicals, and mounting pressure on short sellers who picked the wrong time to bet against this emerging tech leader.
MyS.A.M AI Scanner identified this setup because it checks all our boxes: relative strength during market weakness, increasing institutional interest, and a clear TPS pattern signaling an imminent move.
In next Monday’sLIVE session at noon EST, I’ll break down:
- The exact levels I’m watching for entry
- How I’ll manage this trade through potential market volatility
- Additional quantum computing plays on my radar
- Real-time trading opportunities as they develop
While other traders chase overvalued tech giants, we’re positioning ourselves in the emerging sectors poised to dominate 2025.
Don’t wait until after the breakout when options premiums soar. Get positioned now.
Click here to join Monday’s Profit Surge Trader LIVE session and start 2025 with high-probability setups like QUBT.
Let’s make this our most profitable year yet.
— Nate Bear
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