February 2

Greenbrier: #PowerStocks Series Pick Of The Week (February 2025)

Gong Xi Fa Cai!

The Spring festival is here!

How many Yu Sheng have you had?

How many lion dance performances have you seen?

I hope you’ve had fun with your friends and family. Is there more to come this week?

I’m glad that the US stock market pulled back last week, bringing more explosive swing trading opportunities. Before I share my stock pick of the week, shall we review the stock picks shared in January?

  1. Workiva: No entry
  2. CyberArk: Gain of 10.4%
  3. Dutch Bros: Gain of 7.9%
  4. Flowserve: No entry
  5. Semtech: No entry

#PowerStocks Series Results Jan 2025

The stock market experienced a decline in the 1st half of Jan before rallying 6%, and finally shedding some of its gains to end the month just 2.7% higher.

Picking the right stocks can become more challenging in this high-volatility environment. This is when seasoned traders shine.

Seasoned traders have a battle-proven strategy and a tough mindset. They don’t allow their emotions to get the better of themselves because they trust their tested system.

This translates to a superior result.

Did you enjoy the trades on CyberArk and Dutch Bros?

Before I share this week’s #PowerStocks pick, let’s review last week’s pick – Semtech (SMTC).

Review Of Last Week’s Pick Of The Week

Semtech (SMTC) was last week’s stock pick.

The company manufactures and sells semiconductors targeting high-end consumer, enterprise, communications, and industrial segments.

After sharing my stock pick, news of DeepSeek surfaced, causing a market turmoil.

Stock prices of semiconductors and other AI-related companies plummeted.

Thankfully, I had my trade plan to rely on. Because the share price of Semtech had crashed below its support area of around $72.50, there was no entry.

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Why Is Swing Trading Greenbrier (GBX) Worth It?

Greenbrier logo

Source: gbrx.com

Greenbrier designs, manufactures, and sells railroad freight car equipment.

While its business isn’t glamorous, its share performance caught my eye.

In Jan 2025, its share price had risen by more than 8.6%! This blows the S&P 500 performance of 2.7% out of the water.

Over the past 11 months, its shares have exploded upwards multiple times, with the largest measuring 22.5%!

As its share price pulls back, which price area am I waiting for to buy them for an explosive swing trade?

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 Greenbrier (GBX)

Comparison of S&P 500 and Greenbrier

From the chart above, can you tell that Greenbrier’s share price has been in an uptrend?

I’ve learned not to underestimate the power of price trends because the price momentum will likely continue in the foreseeable future.

Therefore, I’ll be looking for an opportunity to buy the shares of Greenbrier for an explosive swing trade.

Concluding at this juncture is premature and reckless.

Let’s compare the performance of the S&P 500 and Greenbrier’s shares for the past 3 months.

Referring to the chart above, the S&P 500 climbed modestly by 5.4%. Meanwhile, Greenbrier’s shares had shot up by 12.4% in the same period! That’s an outperformance of over 2.2x!

I’m excited to analyze the shares of Greenbrier further.

How Explosive Is Greenbrier (GBX)?

Greenbrier Explosive Up Moves

Looking into the details, I noticed that its upmoves are highly explosive!

This is good news because it assures me that my money will be working hard if I buy its shares.

In the last 11 months, the share price of Greenbrier experienced 19 explosive up moves. Each of these up moves measures between 4.5% and 22.5%!

Enjoying a big market capitalization of over $2b, the magnitude of these moves seems effortless!

More importantly, Greenbrier’s market capitalization of over $2b reduces the risk of manipulating its shares, adding another layer of security to trading them.

I’m tempted to buy its shares now for an explosive swing trade.

But is the time right?

Key Price Levels

Greenbrier Key Price Levels

How can I possibly know whether the time is right to buy its shares for an explosive swing trade?

By uncovering its key price levels – which happens to be its support area in this instance.

I’ve identified a strong support area around $67. This is where the share price of Greenbrier has bounced off many times.

Currently, its share price is slightly below $67. I’ll want it to rise above $67, telling me the bulls are ready to take charge and propel its share price higher.

I’ll watch the price area of $67 closely before buying 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?

 

Deciding

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:

Comparison Table of CFD and Options

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:

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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?

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!


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