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Hot Stocks: UMAC and PSQH Blast Off on a New Trump Catalyst

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Written by Timothy Sykes

Donald Trump Jr.’s involvement with various companies is reigniting a trend of dramatic stock price surges tied to the Trump name. Recent announcements have led to significant spikes in low-cap stocks, sparking fresh interest among traders. This phenomenon isn’t new—Trump-related stocks like DJT and PHUN have spurred similar rallies in the past.

This article explores this recurring catalyst, and will give you some ideas on how traders can position themselves for future opportunities.

My top Trump stocks include the following:

Stock TickerCompanyPerformance (YTD)
AMEX: UMACUnusual Machines Inc+ 187.46%
NYSE: PSQHPSQ Holdings Inc- 20.71%
NASDAQ: DJTTrump Media & Technology Group Corp+ 99.08%
NASDAQ: PHUNPhunware Inc+ 10.34%

The Trump Catalyst: The Hottest Trend in the Market

The “Trump effect” on stocks dates back to the meteoric rise of Trump Media & Technology Group Corp (NASDAQ: DJT) in 2021. DJT, which operates Truth Social, spiked 1,600%* after its initial public offering. It continued to show volatility during subsequent Trump-related news cycles, including a 260%* rally in October 2024 as the presidential election approached.

Similarly, Phunware Inc (NASDAQ: PHUN) gained fame during Trump’s 2016 and 2020 campaigns, where it served as a mobile engagement platform. PHUN often sees dramatic moves tied to election cycles, including a 330%* spike in late October 2024 as election day neared.

These historical examples set the stage for the current trend: stocks announcing Trump Jr.’s involvement as an advisor or board member are showing similar explosive potential.

4 Trump Catalyst Stocks

My top 4 Trump stocks to watch are:

  • AMEX: UMAC — Unusual Machines Inc — The Donald Trump Jr. Drone Stock
  • NYSE: PSQH — PSQ Holdings Inc — The Donald Trump Jr. Consumer Platform Play
  • NASDAQ: DJT — Trump Media & Technology Group Corp — The Donald Trump Sr. Mid-Cap Stock
  • NASDAQ: PHUN — Phunware Inc — The Donald Trump Sr. AI Penny Stock

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Unusual Machines Inc. (AMEX: UMAC) — The Donald Trump Jr. Drone Stock

On November 27, UMAC, a drone technology company, announced that Donald Trump Jr. had joined as an advisor. The news ignited a 340%* surge over multiple days, with premarket trading acting as a key driver for the move. UMAC capitalized on its positioning in a high-growth sector—drones—while leveraging Trump Jr.’s name recognition to gain investor attention.

Check out my in-depth report on UMAC here.

Trading Insight: UMAC remains on traders’ radars for follow-up moves, especially if additional catalysts emerge. Watch for textbook patterns like breakouts or consolidation zones that could precede further spikes.

PSQ Holdings Inc. (NYSE: PSQH) — The Donald Trump Jr. Consumer Platform Play

Just a week after UMAC’s spike, PSQH announced on December 3 that Trump Jr. had joined its board of advisors. The result was a 270%* intraday rally as traders jumped on the news. PSQH, a consumer platform company, leveraged the announcement to draw speculative interest, mirroring UMAC’s trajectory.

Strategic Tip: While the initial spike has passed, PSQH may exhibit continued volatility. Keep an eye on support levels and potential bounces as the stock consolidates.

More Breaking News

Trump Media & Technology Group Corp (NASDAQ: DJT) — The Donald Trump Sr. Mid-Cap Stock

DJT has long been a hallmark of Trump-related stock rallies. Its association with Truth Social, a politically charged social media platform, makes it highly reactive to Trump news.

Following the election, DJT shares rose, reflecting investor optimism about the company’s prospects under the new administration. However, the stock experienced an 11% decline in November, suggesting a “buy the rumor, sell the news” reaction among investors.

In recent developments, TMTG is exploring the development of a cryptocurrency payment service called TruthFi, aiming to diversify its revenue streams. Even though it isn’t in penny stock territory anymore pricewise, it’s still a sketchy stock—its executives sold over $16 million in stock post-election.

What to Watch: DJT often reacts to election-related news, creating opportunities for short-term trades. Historical patterns suggest significant price swings during periods of heightened political attention.

Phunware Inc. (NASDAQ: PHUN) — The Donald Trump Sr. AI Penny Stock

PHUN, known for its role in Trump’s past campaigns, remains a key stock for traders watching Trump-related catalysts. PHUN spiked 540%* in January 2024 and 330%* in October 2024 as political momentum built ahead of the election. Its dual role in mobile engagement and AI-driven technology makes it a unique player in the Trump stock ecosystem.

Following the recent election, PHUN shares experienced fluctuations, with a significant surge post-election, reflecting investor speculation on its potential involvement in future political campaigns.

Financially, Phunware reported a loss of $2.8 million in its third quarter, with revenues declining compared to the previous year. The company is also undergoing leadership changes, with the retirement of CEO Mike Snavely and the appointment of Stephen Chen as interim CEO.

Trading Advice: Monitor PHUN for future moves tied to political or AI-related announcements. Use historical price action to guide entries and exits.

* Past performance does not indicate future results

Understanding the Trump Stock Trend

The common thread among these stocks is their ability to attract speculative interest following high-profile announcements. Whether tied to Trump Sr. or Jr., these stocks often exhibit sharp spikes followed by periods of consolidation or reversal.

Why These Stocks Spike:

  1. Name Recognition: The Trump brand carries significant clout, attracting both retail and institutional attention.
  2. Sector Relevance: Stocks in tech, drones, and consumer platforms gain additional traction when paired with Trump-related announcements.
  3. Human Psychology: Market participants often overreact to high-profile news, creating opportunities for disciplined traders to capitalize on predictable patterns.

How to Trade Trump-Related Stocks

For traders, the Trump catalyst presents unique opportunities—but also significant risks. Here’s how to navigate this volatile niche:

  1. Monitor News Feeds: Stay updated on announcements involving Trump Jr. or other Trump family members joining boards or advisory roles.
  2. Identify Proven Patterns: Use trading frameworks like the 7-Step Pennystocking Framework to recognize setups such as breakouts and dip buys.
  3. Set Clear Risk Parameters: Volatility cuts both ways—always set stop-losses to protect your trades.
  4. Focus on Historical Movers: Stocks like UMAC, PSQH, DJT, and PHUN have shown strong reactions to Trump-related news in the past. Keep them on your watchlist for potential follow-up moves.

The Trump Jr. catalyst is unlikely to fade anytime soon, particularly with four more years of Trump’s presidency ahead. These announcements have already proven to move markets, and more companies could follow suit in naming Trump Jr. to leadership positions.

Conclusion

The Trump effect continues to drive significant market movements, presenting both opportunities and challenges for traders. By staying disciplined, leveraging historical data, and utilizing relevant trading strategies, you can capitalize on this recurring market catalyst.

As always, focus on preparation, risk management, and adaptability to navigate these fast-moving stocks effectively!

What do you think of the Trump catalyst? Let me know in the comments!

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”