The election fever is heating up in this tiny nation-state.
All constituencies are being contested except for 1.
Political rallies are being organized nationwide, and their political messages are being broadcast through various media platforms.
Banners and placards are also displayed at carparks and traffic junctions, vying for a vote.
Who will be you be voting for in this Singapore General Election?
Looking at the US, President Trump seems to have softened his stance on tariffs on China. While he insisted that he had been speaking with China regarding trade, China has rejected that any conversation had taken place.
Nonetheless, the US stock market seems to have finally found a bottom, and green shoots are forming. The rainbow is here (provided President Trump doesn’t throw another stunt).
This has also brought more candidates that suit this explosive swing trading strategy.
Before I share this week’s #PowerStocks pick, shall we review the performance of last month’s picks?
- Pembina Pipeline: No entry
- Ollie’s Bargain Outlet: No entry
- Dollar General: 6.6% gain
- Atmos Energy: No entry
April was wild.
Reciprocal tariffs were imposed on almost every country, with China facing the highest amount.
What shocked the world was the amount of tariffs that Chinese goods faced – 145%.
That spooked the global stock market, sending many stocks into a free fall of over 10% in a few days. The last time this happened was in 2020 due to COVID-19.
Just as things looked to get worse, President Donald Trump announced that it’s time to buy stocks. This announcement pushed the S&P 500 higher by 10.5% in a single day!
However, his announcement wasn’t able to overturn the losses. April is still down 1.5%.
Through this chaotic period, Dollar General (DG) stood out. It has brought a 6.6% gain in just 1 week, against the backdrop of a falling market.
Did you enjoy the trade ideas shared in April?
Review Of Last Week’s Pick Of The Week
Atmos Energy was last week’s stock pick.
It’s a Utilities company that has been much stronger than the S&P 500 over the past few months.
How strong?
As the S&P 500 was sliding continuously, the share price of Atmos Energy had been rising hard, forming multiple new all-time highs!
I had been waiting for its share price to pull back to around $152 before buying its shares for an explosive swing.
The pullback came on Mon, but it was shallower than expected, so there’s no entry.
Will I continue waiting for this stock to pull back to around $152?
I’ve shared my decision in my Telegram Channel.
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 CrowdStrike (CRWD) Worth It?
Source: crowdstrike.com/en-us
CrowdStrike belongs to the Technology sector because it’s a provider of cybersecurity solutions.
Given that we live in an increasingly digital world, demand for top cybersecurity solutions is high.
This is illustrated by the performance of CrowdStrike’s shares over the past 3 months compared to the S&P 500.
While the S&P 500 slid 9.4%, the shares of CrowdStrike rose a remarkable 13.3%!
Traders and investors are highly optimistic about its shares, and so am I.
But, is it time to buy its shares for an explosive swing trade?
Not quite yet.
What’s the price area I’m 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 CrowdStrike (CRWD)
The S&P 500 was hit hard when President Donald Trump returned to office.
His flood of new Executive Orders got everyone scrambling to amend their operations, especially the reciprocal tariffs that was recently imposed and lifted for 90 days.
Did the return of President Donald Trump negatively affect the share price of CrowdStrike?
Crowdstrike’s share price was in a downtrend until very recently.
The bulls returned, pushing the share price of CrowdStrike higher in Apr. The bulls are back with a vengeance!
Knowing this is advantageous. I’ll look for a buying opportunity to increase my chances of success.
To further increase my chances of success, CrowdStrike’s shares should outperform the S&P 500.
Let’s refer to the comparison chart above to find out.
In the last 3 months, the S&P 500 slid by 9.4%. In contrast, the shares of CrowdStrike rose by a marvelous 13.3%! The shares of CrowdStrike have convincingly outperformed the S&P 500.
I’m tempted to buy its shares now. But are there more things to consider?
How Explosive Is CrowdStrike (CRWD)?
Yes, of course! If only trading were this straightforward!
Because I’m looking to buy its shares for a swing trade (ie. to buy and hold for a couple of weeks at most), I would love for its shares to be able to explode upwards in price in a short amount of time.
However, before I proceed, I need assurance that my trading capital isn’t invested in a stock that could be easily manipulated. Therefore, I’m going to find out the market capitalization of CrowdStrike.
Ooh! I love what I see.
CrowdStrike enjoys an enormous market capitalization of over $105b!
This is wonderful because the shares of companies with large market capitalization are much tougher to manipulate, adding a layer of security to my hard-earned money.
With a huge market capitalization, can its shares rise to the occasion by surging upwards in short periods of time, consistently?
In the chart above, I’ve marked out the upbursts of CrowdStrike over the past 11 months.
I had to rub my eyes twice to confirm the number of upmoves I’ve marked out.
In just 11 months, the shares of CrowdStrike had burst upwards in price 19 times! That’s 1.7 upbursts in a month on average.
What’s even more exciting?
Its shares are highly explosive, bursting upwards by between 5.8% and 41.3% each time!
Should I buy its shares for an explosive swing trade now?
Key Price Levels
This is where I’ll find my answer.
No one likes losing, especially when it comes to money.
After more than a decade of trading the US stock market, I’ve realized the need to be disciplined. Instead of chasing stocks, I’d wait for the stock’s price to reach the key price levels I have in mind.
What are these key price levels? They are also known as support and resistance.
Did you also notice a support area around $395?
Because that’s most probably where the share price of CrowdStrike will pull back to before launching higher, I don’t want to buy its shares now for an explosive swing trade.
Instead, I’ll be patiently waiting for its share price to retrace to this price area and bounce before clicking the Buy button.
This approach has saved my students and I from countless heartaches.
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, 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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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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