Did you stay up to watch the Champions League Final between Paris Saint-Germain and Arsenal?
Arsenal narrowly lost, but did English football proud.
In recent years, English teams have improved to dominate tournaments – the Europa and Champions League, especially. Unfortunately, the same cannot be said of Italian teams.
Italian teams were once fearsome, with tough tacklers, silky forwards, and elegant midfielders. I hope that Italy qualifies for the next World Cup.
On the topic of the World Cup, this edition will be co-hosted by Canada, Mexico, and the US. Many Consumer Discretionary stocks are benefiting from this tournament, including this week’s stock pick.
But before I share my findings, let’s discover how the stocks shared in May performed.
- Norfolk Southern: -3%
- Cadence: 6.8% (ongoing)
- A10 Networks: No entry yet
After surging without a pause in April, many traders anticipated a deep pullback in the S&P 500 in May. I was 1 of them.
When the anticipated pullback finally came in mid-May, it was shallow and short-lived. Since then, the market has been rising without hindrance.
Such bullishness has lifted the stocks that I’ve shared – Norfolk Southern (before its merger review got paused by the US Surface Transportation Board), Cadence, and A10 Networks.
Upon the news that the merger review between Union Pacific and Norfolk Southern was shelved, the shares of Norfolk Southern turned south and hit my stop loss.
Thankfully, the admirable performance of Cadence’s shares helped deliver an average gain of 1.9% in May. Yes, this is lower than the S&P 500’s 5.2% performance. I will do better.
Shall we now review last week’s stock pick – A10 Networks?
Review Of Last Week’s Pick Of The Week
A10 Networks (ATEN) was last week’s stock pick.
It’s a hugely underrated technology company that designs and develops integrated circuits and electronic devices.
After rising by over 16%, I was waiting for its shares to pull back to its support zone at around $27.70.
What goes up must come down. As its share price continues to soar, I’m still waiting patiently.
Do I plan to shift my entry price area?
Head over to my Telegram Channel to find out!
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Why Is Swing Trading Ford Motor (F) Worth It?
Source: seeklogo.com/vector-logo/56588/ford
Ford Motor is an internationally well-known car company.
Its constant search for efficiency led to the invention of the moving assembly line, which is widely adopted across industries.
With a market capitalization of nearly $70b, Ford Motor is the world’s 7th-largest car retailer.
Unlike many large companies whose shares exhibit lethargic price movement, the shares of Ford Motor are highly active, consistently surging.
In just the past 11 months, its shares have surged upwards 23 times, each measuring between 4.2% and 36.9%!
Furthermore, Ford Motor’s share performance is more than 2.3x that of the S&P 500.
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.
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Performance Of US Stock Market vs Ford Motor (F)
What do I want to find out at the start?
The trend of Ford Motor’s share price.
Knowing the trend of its shares allows me to determine whether I’ll be looking for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Looking at the chart above, its shares are in a strong uptrend. Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare the performance of its shares against the S&P 500.
Why?
I want my hard-earned money to work hard for me. A stronger-performing stock is likely to continue bringing a larger-than-market return. So, I’ll have a look at the comparison chart above again.
While the S&P 500 has risen by a respectable 10.2% in the past 3 months, the shares of Ford Motor have risen by a jaw dropping 23.7%! That’s more than a 2x outperformance!
I want to buy its shares for an explosive swing trade.
Should I do just that now?
How Explosive Is Ford Motor (F)?
No! I shouldn’t buy its shares without conducting a deeper analysis.
Because I aim to ride its shares for its next burst upwards (I don’t want to hold its shares through a pullback or reversal), my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Ford Motor been able to explode upwards consistently?
Marking out the explosive bursts in the past 11 months left my eyes wide open.
In just the past 11 months, its shares have burst upwards 23 times, each measuring between 4.2% and 36.9%!
When I found out about Ford Motor’s market capitalization, my eyes popped.
This company enjoys an enormous market capitalization of almost $70b! The shares of large companies don’t usually enjoy large bursts in price, but Ford Motor is different.
Additionally, I appreciate that Ford Motor 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 Ford Motor for an explosive swing trade?
Key Price Levels
Like many things in life, timing is crucial when it comes to stock trading.
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!
But, is there a way to tell whether the time to buy the shares of Ford Motor is here?
You can do so by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
After rising 36.9% in less than 2 weeks, a pullback could be around the corner.
Where are the shares of Ford Motor likely to pull back to?
Referring to the chart above, its shares are likely to fall to around $16.20 before heading higher once again.
Thus, I would like to wait for the scenario above and a bounce in price to occur 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.
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