Copart: #PowerStocks Series Pick Of The Week (April 2026)

Things in the Middle East aren't looking rosy. With the entry of Houthi forces in Yemen, the armed conflict in the Middle East is further escalating and adding complexity. Because of this, the probability of a peaceful resolution and ceasefire drops to almost nil. Can Israel also sustain a multinational fight? How is the US planning to de-escalate? I have no idea. But if a ceasefire deal were to be agreed, I hope that it will be respected. On the other hand, there's one thing I'm clear about: as the US stock market continues to slide, I'll be looking for shorting opportunities. But before I share my findings, let's discover how the stocks shared in November performed.

1. United Parcel Service: No entry
2. Netflix: -1.4% (ongoing)
3. Evergy: -3%
4. Performance Food Group: 2.1% (ongoing)

All eyes are on the war in the Middle East throughout March. All ears are on the rhetoric by President Donald Trump, which seems to be changing from time to time. Such uncertainty, coupled with high oil prices, spooked the stock market, sending it lower by 7.6%. I was rubbing my hands in excitement for the shares of United Parcel Service. But its shares slipped on the day I was about to buy them, saving me from a loss. Evergy was a pity, as things had been going well for a couple of days before a U-turn. I took a 3% loss on this stock. Trading opportunities in the shares of Netflix and Performance Food Group soon appeared. They are still open trades, and let's see how they turn out a while more. Here comes the answer to the question that's lingering in your mind - how did our #PowerStock picks perform against the S&P 500? While the S&P 500 slid 7.6%, our stock picks lost 0.8% on average. This outperformance is welcome, though I'd prefer a gain!

Review Of Last Week's Pick Of The Week

Performance Food Group (PFGC) was last week's #PowerStocks pick. It's 1 of the top 40 largest food companies in the world, supplying food and food-related products to restaurants, vending machines, cinemas, and more. Did the shares of Performance Food Group pull back and drop as anticipated? Performance Food Group's shares rose on Mon and crossed slightly above $85 before falling. I'm cheering for a further drop to its support area before taking profit. 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 Copart (CPRT) Worth It?

Source: https://www.copart.com/content/copart-esg-report-2024.pdf

Copart provides online auctions and vehicle remarketing services in North America, Europe, Brazil, and the Middle East. With a market capitalization of over $30b, Copart is the world's 2nd-largest car retailer. Unlike many large companies whose shares exhibit lethargic price movement, its shares are highly active, consistently making big moves. After falling by 17% in 3 weeks, its shares are taking a short break. As this happens, I'm eyeing to short its shares soon. What's my game plan? Where's a favorable price area to short 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 Copart (CPRT)

The very 1st thing I want to know is the trend of Copart's shares. Knowing the trend of its shares (in blue) 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. Looking at the chart above, its shares are in a strong and mighty downtrend. Hence, I'd like to find an opportunity to short 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 weaker-performing stock is likely to continue to slide further, bringing a larger-than-market return. So, I'll have a look at the comparison chart above again. While the S&P 500 has dropped 7.8% over the past 3 months, the shares of Copart have skidded over 17.8%! That's over a 2x underperformance! I'm excited. I can't wait to short its shares for an explosive swing trade. Should I do just that now?

How Explosive Is Copart (CPRT)?

No, I shouldn't rush to short its shares without a deeper analysis. Since I plan to short its shares and capitalize on its next downmove rather than accompanying it when it pulls back, my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode downwards. Have the shares of Copart been able to explode downwards consistently? Marking out the explosive downmoves for the past 11 months has left me stunned. There are 13 explosive downmoves, with each measuring between 5.2% and 25.7%! I got more excited when I discovered the size of Copart. This company enjoys a large market capitalization of over $30b! It's no easy feat for the shares of such a company to explode in price consistently. Additionally, I appreciate that Copart has a market capitalization of over $30b, which 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 short the shares of Copart for an explosive swing trade?

Key Price Levels

Timing is crucial for many things in life. This includes stock trading and investing. Shorting 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 short the shares of Copart 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. After sliding by more than 17% in 3 weeks, its shares have been resting for a week. What's likely to happen after this rest? I think that its shares could fall further. So, what am I waiting for? I'm waiting for its shares to open below its resistance area at around $32.60 before shorting them to catch its next explosive downmove. 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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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!