CME: #PowerStocks Series Pick Of The Week (February 2026)

COVID-19. It struck sometime in 2019 before it was given a name. This outbreak lasted for close to 2 years before the human body developed immunity to it. Just weeks ago, there was a new virus outbreak. This time, it was Nipah. That got me shuddering for a while because the horror of the COVID-19 pandemic is still fresh in my mind. But soon after, Singapore reported a measles outbreak. The comforting note is that Singapore has developed herd immunity. Looking at the US stock market, the past couple of weeks have been trying. The volatility spike was a result of geopolitical tensions and regulatory changes affecting precious metals. How did last week's #PowerStocks pick, Monster Beverage (MNST), perform in such a market environment?

Review Of Last Week's Pick Of The Week

Monster Beverage (MNST) was last week's #PowerStocks pick. It ranks among the world's 10 largest beverage companies, yet its shares have the ability to explode higher repeatedly. After rising 11.1% in less than 3 weeks, its share price pulled back. Did it bounce higher thereafter? Yes, it did! 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.

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Why Is Swing Trading CME (CME) Worth It?

Source: cmegroup.com

CME is a massive financial institution that controls several exchanges in the US, such as the Chicago Mercantile Exchange, New York Mercantile Exchange, and Commodity Exchange (where gold, silver, and copper futures and options are traded). With its size of operations, CME enjoys an enviable market capitalization of over $108b. CME is ranked among the top 40 financial institutions in the world. While the shares of many large companies are lethargic, CME's aren't. Its share price is capable of bursting upwards repeatedly, between 4.2% and 15.2%, 15 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 CME (CME)

What is the 1st thing I'd want to know from this analysis? I want to identify the trend of CME'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 CME's share price from mid-Jan, 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 CME'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 2.9% in the past 3 months, the shares of CME shot up by more than 9.3% in the same time period! That's an eye-popping outperformance of over 3x! I want to buy its shares for an explosive swing trade. But is this all to analyze?

How Explosive Is CME (CME)?

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 CME been exploding upwards consistently? Marking out the explosive upmoves for the past 11 months has left me stunned. There are 15 explosive upmoves, and each of them measures between 4.2% and 15.2%! What's even more impressive? CME is 1 of the largest financial institutions with a massive market capitalization of more than $108b. The share movement of such huge companies is usually more subdued, but not CME's. Additionally, I appreciate that CME 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 CME 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 CME 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 $291. Because its shares have been soaring for close to a month, a pullback could happen very soon. Once this happens, I'll be on the lookout for a bounce off $291 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. Click on the banner below to claim your stock course for free (limited time) now!