This has got to be the hottest song in 2024.
Apt by Bruno Mars and Rose.
Released 1 month ago, this song has taken the world by storm.
While on a team retreat overseas, I heard this song play at several shops.
I’ve also seen posters of Bruno Mars and Rose pasted on walls overseas.
Are you a huge fan of the hit Apt?
Besides the music industry, there’s another place full of hits.
Yes, it’s the stock market.
Nvidia remains the top hit, attracting constant attention from traders and investors even though its shares have not performed for weeks.
In contrast, PayPal (PYPL), our #PowerStocks pick for last week, performed exceptionally well!
Shall we review it?
Review Of Last Week’s Pick Of The Week
PayPal (PYPL) was last week’s stock pick.
It belongs in the Financials sector and has consistently beaten the performance of the S&P 500.
Identifying a support area around $83, I’d anticipated for its share price to fall to this price area before rising.
And it did!
It has since risen to $86.77, and I think there’s more room for this rise.
What price area is PayPal’s shares likely to get resisted at?
I’ve shared it in my Telegram Channel for educational purposes.
Shall we now discover why Assurant is my stock pick of the week?
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 Assurant (AIZ) Worth It?
Source: ir.assurant.com/investor-relations/default.aspx
Assurant is an insurance provider in the Financials sector.
Long before Donald Trump won the latest presidential election, its share price has been rising steadily.
In the last 3 months, Assurant’s shares have risen by more than 19%.
Such a performance beats that of the S&P 500 by more than 2.6x!
As its share price soars, I foresee a pullback coming soon.
This pullback could be an excellent opportunity for an explosive swing trade.
Which price area am I waiting for?
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 Assurant (AIZ)
The first step is identifying the price trend of the S&P 500 and Assurant’s shares.
Can you tell that both are in an uptrend?
This is crucial because you’ll want to buy stocks in an uptrend to maximize your trading capital.
Let’s compare the performance of Assurant’s shares against the S&P 500’s.
In the last 3 months, the S&P 500 had risen by 7.1%.
In comparison, the share price of Assurant had risen by 19.1%!
That’s an eye-popping 2.6x outperformance!
This is a strong reason to continue analyzing Assurant’s shares.
How Explosive Is Assurant (AIZ)?
To help you decide whether buying the shares of Assurant is worth your time and money, I’ve marked out and measured its upmoves in the past 11 months.
Did you notice that the magnitude of its upmoves has increased since July 2024?
This is highly welcomed and impressive for a company enjoying a market capitalization of more than $11b.
You can safely conclude that buying the shares of Assurant for an explosive swing trade is worth your time and money.
However, is it time to buy its shares?
Key Price Levels
Is this the right time to buy Assurant’s shares for an explosive swing trade?
To find out, let’s uncover its key price levels that’s also known as support and resistance.
Knowing these support and resistance areas can help you identify better buying prices, improving your risk-to-reward ratio.
In its latest upmove measuring 18.3% and counting, a pullback is possibly very near.
I’ve identified 2 support areas at around $218.50, and $213.
Depending on market conditions, Assurant’s share price could retrace to $218.50 or $213.
And those are the price areas I’ll watch closely before picking its shares for an explosive swing trade.
Here’s a pro tip: Instead of staring at your screen, you may want to set 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, the price of your options contract may even drop, depending on the market condition!
Your CFD broker will charge you a finance charge for lending you money for your trade. There’s no lending required for options, hence there’s 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 CFD and options are leveraged instruments because they allow you to control a larger position in the market with a smaller amount of capital.
While there isn’t an expiration date for CFD, options traders must pay attention to the expiration date of their options contract.
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.
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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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?
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