Happy New Year!
Have you set your goals for 2024?
What are they?
“Enjoy a salary increment of 10%.”
“Achieve a return of at least 30% from the stock market.”
“Identify the moments I fall into the FOMO (fear of missing out) trap and become more logical.”
Though we had experienced a magnificent bull market in 2023, there were pretty heart-stopping moments, such as the 9% decline in Feb and Mar 23, and the 10.8% correction from Aug to Oct 23.
Will 2024 be as volatile?
I think so!
In a highly volatile environment, short-term swing trades tend to perform well.
Before we explore this week’s powerful stock pick, let’s revisit last week’s powerful stock pick: CrowdStrike (CRWD).
The share price of CrowdStrike has been resilient.
Despite this, I think that a deeper pullback to ~$234 could happen soon, so it’s worth the wait.
As we wait, let’s focus on this week’s powerful stock pick: Pinterest (PINS).
Performance Of US Stock Market vs Pinterest (PINS)
Does the share performance of Pinterest qualify for a powerful swing trade?
The answer can come from the comparison chart above.
Its shares performed in sync with the S&P 500 in Oct 23 before a burst of sustained bullish momentum swept its price higher and higher.
In addition, the share price of Pinterest is in a strong uptrend.
These 2 initial criteria are important in your analysis because you’ll want to enjoy a return that’s higher than the market and ride the trend.
What’s the other criteria?
Let’s find out in the next section.
How Explosive Is Pinterest (PINS)?
Because swing trades last for a couple of days or weeks, you’ll want to trade a stock that’s capable of exploding in price in a short time.
I’ve marked out the explosive up moves of Pinterest in the past 9 months to save you time.
No, your eyes aren’t playing tricks on you.
Its share price has exploded 18 times in just 9 months!
Knowing that Pinterest is a $25b company, this is even more impressive!
You may be feeling a mixture of fear and greed by wanting to buy Pinterest’s shares now. To help you stay logical, let’s find out if this is a good time to be buying its shares for a swing trade.
Key Price Levels
Uncovering the key price levels of the stock you’re analyzing can help you determine if it’s a good time to buy it for a swing trade.
This is because key price levels act as support and resistance.
I’ve identified 2 key price levels, at ~$34.80 and ~$37.
Although the shares of Pinterest are well supported at ~$37, I think that this support area could be breached temporarily before rising.
If its share price falls to its next support area at ~$34.80, I will not proceed to buy its shares for a swing trade.
The Strategy You Can Use To Swing Trade Pinterest (PINS)
After comparing the performance of PINS with the broader US stock market, determining whether PINS has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy.
To stay in business, you must know your entry, profit-taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.
Using The Art of Explosive Profits (AEP) framework, I’d like to see PINS pullback deeper before considering an entry for a swing trade.
As the name implies, you’ll be looking to consistently catch an explosive move in a short time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading, like PINS.
You’ll also learn how to read charts and identify stocks that are about to make a big move.
Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!
Can you apply the AEP framework to provide you with a side income while working full-time?
Yes, you can!
Come, have a look at the AEP framework and incorporate this explosive trading strategy into your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading PINS Worth It?
PINS is in a strong uptrend and has been outperforming the S&P 500 consistently, providing traders with outsized returns.
It has been exploding in price repeatedly in the past 9 months, and this is likely to continue.
While you wait for the setup, please keep in mind that I’m not a financial advisor, so please treat this as infotainment and conduct your own research.
Lastly, all images are from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com.
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