Mothers.
They are the most selfless and loving people in the world.
As I age and mature, I treasure my mother more and more. Without her strict value-based approach, I would have gone astray long ago.
How did you celebrate Mother’s Day last weekend?
Let’s treasure our parents and loved ones more, shall we?
The US stock market is having the time of its life! Year-to-date, the S&P 500 is up 6.8% after a volatile start.
In this strong bullish market, how did last week’s #PowerStocks pick, Norfolk Southern (NSC), perform?
Review Of Last Week’s Pick Of The Week
Norfolk Southern (NSC) was last week’s #PowerStocks pick.
It ranks among the world’s 5 largest railway companies, yet its shares have repeatedly exploded higher.
After rising 8.4% over 3 days, its share price began to pull back.
Did it bounce higher thereafter?
Yes, it did! But before I could celebrate, its shares retreated slightly lower and began dancing around its support zone.
I intend to hold this stock for a while longer.
Where am I looking to take profit at?
Head over to my Telegram Channel to find out!
Speaking of Telegram, my team and I will never ask you for your hard-earned money for “investments”.
I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
A list of our official communication channels can be found here.
Why Is Swing Trading Cadence (CDNS) Worth It?
Source: cadence.com
Cadence is a huge and underrated technology company that designs and develops integrated circuits and electronic devices.
Given its core competency, the company is collaborating with giants in the AI industry, namely Google and Nvidia.
With its size of operations, Cadence enjoys an enviable market capitalization of over $100b, ranking it among the 60 largest technology companies in the world.
While the shares of many large companies are lethargic, Cadence’s aren’t.
Its share price is capable of bursting upwards repeatedly, between 6.3% and 26.5%, 16 times in just the past 11 months!
A pullback could emerge soon, providing me with a fantastic opportunity to buy its shares and ride its next big upmove.
What’s my game plan?
Where’s a favorable price area to buy its shares at?
Continue reading to get the details.
P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time?
My team and I have worked tirelessly to help you achieve results fast.
Click on the banner below to claim your stock course for free (limited time) now!
Performance Of US Stock Market vs Cadence (CDNS)
What is the 1st thing I’d want to know from this analysis?
I want to identify the trend of Cadence’s share price.
Why?
Knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Given the mighty uptrend in Cadence’s share price from mid-Apr, I’d like to identify a buying opportunity.
Great! But that’s not all.
I’ll compare the performance of the S&P 500 (black) against Cadence’s shares (blue).
A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder.
While the S&P 500 had climbed 6.3% in the past 3 months, the shares of Cadence shot up by more than 24% in the same time period! That’s an eye-popping outperformance of almost 4x!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is Cadence (CDNS)?
No, there’s still more to analyze to boost my chances of success.
Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast.
Have the shares of Cadence been exploding upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 16 explosive upmoves, and each of them measures between 6.3% and 26.5%!
What’s even more impressive?
Cadence is 1 of the largest technology companies supporting the AI industry and therefore enjoys a massive market capitalization of more than $100b.
The share movement of such huge companies is usually more subdued, but not Cadence’s.
Additionally, I appreciate that Cadence enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don’t wish to lose my hard-earned money to manipulation that could be easily prevented!
Here comes the golden question: Is it time to buy the shares of Cadence for an explosive swing trade?
Key Price Levels
As with many things in life, timing is key. Trading is no exception.
Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you’ll doubt yourself even when a fantastic trading opportunity arises straight from under your nose!
Is it time to buy the shares of Cadence for an explosive swing trade?
You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
I’ve marked out a strong support area around $351.
Because its shares have been soaring by almost 15% over the past 9 days, a pullback could happen very soon.
Once this happens, I’ll be on the lookout for a bounce off $351 before buying its shares to catch its next explosive upmove.
Here’s a pro tip: Instead of staring at your screen, consider setting a price alert on your broker’s platform to be notified so that you can spend precious time with your loved ones.
Which Instrument Should You Consider Using?
Do you ever wonder about the instrument used to trade explosive stocks?
With 3 main trading instruments available – stocks, contract-for-difference (CFD), and options, you wonder which suits you best.
Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options.
Here are the main similarities and differences:
CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1.
However, due to its unique pricing mechanism, your options price doesn’t rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop!
Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge.
Because there’s a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons.
Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital.
While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts.
You must be thinking, “What’s the beauty of trading options?”
Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.
And options don’t have to be all about Math and dry!
It can be made easy to understand through real-life analogies.
In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort.
Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process.
Are you a CFD or options trader?
I’m glad to be fluent in both.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
Claim Your Free (Limited Time) Stock Course Right Now:
The stock market is full of traps laid out by professional traders.
Many new traders are often left confused by conflicting signs and signals.
Worse still, ~80% of traders lose money.
This is because trading isn’t just about skill alone.
It includes the mastery of your emotions.
But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market?
My team and I have worked tirelessly to help you achieve results fast.
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