Are you following the World Cup?
I find this edition exciting and full of goals. Several teams took the world by surprise, and this US team looks dangerous.
Which team do you think will win the World Cup?
June is ending, and I look forward to July.
This is because July has been bullish in recent years, potentially allowing me to earn a higher-than-market return.
Before I share my findings and analysis on this week’s #PowerStocks pick, let’s discover how the stocks shared in June performed.
- Ford Motors: No entry
- AppLovin: -12.5%
- Reliance: -4.6%
- MetLife: -2.4%
June began well on its 1st 2 trading days before the market pulled back as much as 5.7% before ending 3.6% lower than May.
Possible reasons include the failed peace deal between the US and Iran, and the likelihood of interest rates remaining high for a longer period of time.
A choppy month was also expected because this has been the trait of June.
The choppy market performance also hit our stock picks, resulting in an average loss of 6.5%.
Thankfully, my stop loss orders were triggered, preventing me from losing more in the market.
Taking a larger-than-market hit occasionally is part and parcel of trading, so I’m brushing this away and looking ahead instead.
Review Of Last Week’s Pick Of The Week
MetLife (MET) was last week’s stock pick.
It’s 1 of the world’s largest insurance companies.
A pullback emerged after an explosive rise of 11.3% in days.
I was waiting for its share price to bounce off its support area at around $86 before buying them.
And they did bounce.
But the market had other plans. Its shares slid almost 4% last Wed, triggering my stop loss.
With the shares of MetLife back at the region of $86, will I consider a re-entry?
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 Vaxcyte (PCVX) Worth It?
Source: vaxcyte.com
Vaxcyte is a biotechnology company that engages in the development of vaccines for infectious diseases.
It boasts a growing market capitalization of over $8b, ranking the company just outside the top 100 largest biotech companies in the world.
Unlike many large companies whose shares exhibit lethargic price movement, the shares of Vaxcyte are highly active, consistently surging.
In just the past 11 months, its shares have surged upwards 22 times, each measuring between 5.3% and 37%!
Instead of rushing to buy its shares, I’m waiting for a pullback to occur first.
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 Vaxcyte (PCVX)
What do I want to find out at the start?
The trend of Vaxcyte’s share price (in blue).
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 its share performance against the S&P 500 (in black).
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 another look at the comparison chart above.
While the S&P 500 has been sliding in June, Vaxcyte’s shares have been rising sharply. This signals a strong bullish move whose momentum is likely to continue.
I want to buy its shares for an explosive swing trade.
Should I do just that now?
How Explosive Is Vaxcyte (PCVX)?
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 Vaxcyte 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 22 times, each measuring between 5.3% and 37%!
When I found out about Vaxcyte’s market capitalization, my eyes widened.
This company enjoys a huge market capitalization of over $8b! The shares of large companies don’t usually enjoy large bursts in price, but Vaxcyte is different.
Additionally, I appreciate that Vaxcyte enjoys an enormous market capitalization, because 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 Vaxcyte for an explosive swing trade?
Key Price Levels
Timing is crucial for many things in life. This includes stock trading and investing.
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 there a way to tell whether the time to buy the shares of Vaxcyte is here?
Fortunately, yes!
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.
Having identified a support area around $54, what’s my game plan?
I think that the shares of Vaxcyte will soon pull back to around $54.
Therefore, I’m waiting for the shares of Vaxcyte to pull back to and bounce off the price area around $54 before buying them 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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Worse still, ~80% of traders lose money.
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