"Pop stocks are driven largely by emotion. They don't trade like normal stocks." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Editor's Note: If you're wondering which stocks could be the hottest to trade in 2026, we have a special event for you next week. Bryan Bottarelli and Karim Rahemtulla going live with their special 2026 market outlook event on Monument Traders LIVE on Wednesday, January 14, at 2 p.m. ET. If you're serious about trading this year, you'll want a seat at this table. The event is completely free. Click here to sign up today. - Stephen Prior, Publisher
Think of a coiled spring. It sits quiet, building tension, and then releases in a sudden energy burst. That's exactly how Recursion Pharmaceuticals (RXRX) trades, and it's one of my top speculative plays for 2026. RXRX is a biotech company that integrates artificial intelligence across biology, automation, data science, and engineering to industrialize drug discovery. But here's what makes it interesting… RXRX doesn't trade like a normal stock. It's what I call a "pop stock" - a stock that jumps fast, often moving 5-30% in days or even hours. Here's how pop stocks like RXRX work… As a biotech drug company, RXRX attracts traders thanks to clinical trial data or AI-driven drug discovery catalysts. When momentum traders catch wind of the news, they pour in fast, driving sharp moves. Pop stocks like RXRX move largely on emotion. Check out its chart below and you'll see the classic pop stock pattern from last year. Notice the consistent spikes and dips every 2-3 months. As AI continues to be a major component of the drug industry, I believe any catalyst news could send it soaring again. But a fair warning - pop stocks tend to drop back down just as fast as it moves up. This is a speculative play - so define your entries and exits and know your risk tolerance before you enter. | 
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