The lights have gone off in Capitol Hill, Washington DC. The US government has shut down after failing to reach a budget agreement.
Essential and critical civil servants, such as teachers and security service personnel, are working without pay.
Economists estimate a loss of billions of dollars resulting from this government shutdown.
When will this shutdown end?
Despite the bleak outlook, the US stock market is still soaring!
I'm not surprised, given the strength of the bulls ever since the tariff war (ie, Liberation Day).
As the market continues to rise, this stock could explode higher in a short amount of time.
But before I share about my findings, let's review last week's #PowerStocks pick:
Robinhood Markets (HOOD).
Review Of Last Week's Pick Of The Week
Robinhood Markets (HOOD) was last week's stock pick.
It's 1 of the most popular trading brokers in the world for its easy-to-use platform and $0 commissions.
After rising 15.3%, it began pulling back.
And it has pulled back to a support area before taking off!
Within 2 days, the shares of Robinhood Markets have reached my take-profit level for a quick 13.7% gain.
What's my take-profit level?
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.
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 L3Harris (LHX) Worth It?
Source: l3harris.com
L3Harris provides defense and commercial technologies across the air, land, sea, space, and cyber domains. The company has also been chosen to power the Golden Dome for the US.
It's the world's 10th largest defense company, enjoying an enormous market capitalization of over $55b.
While the shares of some mega capitalization companies suffer from lethargy, the shares of L3Harris tend to explode upwards consistently—each of its explosive upmoves measures between 4.3% and 17.6%.
After rising over 9.7% in under 2 weeks, its shares are pulling back.
And I think that a fantastic swing trading opportunity is about to emerge, allowing me to ride its next explosive 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 L3Harris (LHX)
What's the 1st thing I'd like to analyze from the chart above?
The
price trend of the shares of L3Harris.
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.
Can you tell that the shares of L3Harris are in a steady and strong uptrend? Therefore, I'd like to find a buying opportunity.
What's the next step?
I'll compare the performance of L3Harris' shares against the overall market (aka S&P 500).
A comparison will flesh out the stronger performer. If the S&P 500 is the stronger performer, then I wouldn't want to waste my time and money on L3Harris' shares, as I'm aiming for an outsized return.
So, let's refer to the comparison chart again.
The S&P 500 has been underperforming when compared to the performance of L3Harris' shares.
Here are the statistics:
In the past 3 months, the S&P 500 has risen by 6.9% while the share price of L3Harris has shot up by 16.2%, outperforming the S&P 500 by 2.3x!
Great! I want to buy the shares of L3Harris.
But are there more points to consider?
How Explosive Is L3Harris (LHX)?
Yes, there are more points to consider before buying its shares for an explosive swing trade.
Since I plan to buy its shares and capitalize on its next upmove, rather than sitting through its fluctuations, my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of L3Harris been able to explode upwards consistently?
I was left in awe while marking out its explosive upmoves.
L3Harris enjoys a massive market capitalization of over $55b. Its shares are valued at nearly $300 each. Yet, its shares have been able to explode upwards 14 times in the past 11 months, with each upmove measuring between 4.3% and 17.6%!
The shares of huge companies are usually more lethargic!
Talking about market capitalization, I love it that L3Harris enjoys such a massive market capitalization because 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 L3Harris for an explosive swing trade?
Key Price Levels
As with many things in life, timing matters.
The right thing done at the right time is the best thing that can happen.
Buying any 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!
So, is there a way to determine whether the time to buy L3Harris' shares is here?
Yes!
Here's how I do it - by uncovering the key price levels (also known as
support and resistance zones) of L3Harris' shares. And that's what I've done in the chart above.
Having risen 9.7% in under 2 weeks, its share price is pulling back.
Where is it likely to fall to before bouncing?
I think that this could happen around $295.
Therefore, I'm waiting for the shares of L3Harris to pull back a little more to around $295 and bounce before buying them 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!
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