Singapore residents have been warned of potential hazy days ahead as the region copes with an extremely hot and dry summer.
Coupled with the offerings for the Lunar 7th Month, our air quality is bound to take a dip.
Let's continue being considerate of one another during this time, and take better care of our health.
On the topic of health, the US stock market is healthy.
After plateauing for almost a month, the S&P 500 shot up like a rocket, creating new all-time highs in the process.
This has got many excited and keen to buy stocks. But here comes the challenge - picking the stock that is likely to bring you a higher-than-market return.
Fret not because I've uncovered 1 that's likely to soar in the coming days.
Before I share this week's stock pick, let's review last week's #PowerStocks pick:
IMAX (IMAX).
Review Of Last Week's Pick Of The Week
IMAX (IMAX) was last week's #PowerStocks pick.
It's well known for the high-quality cinematic experience it provides to moviegoers.
Despite its market capitalization of over $3b, its shares have been exploding higher continually - 26 times in the past 11 months, with each upmove measuring between 4.4% and 38.8%!
After a marvelous rise of over 38% in a few weeks, IMAX began pulling back.
Soon after, it began soaring and continues to.
Where do I think is a good price to take profit?
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 RPM (RPM) Worth It?
Source: rpminc.com
RPM (RPM) manufactures and sells construction solutions such as coatings, sealants, and building materials.
It's 1 of the world's largest companies in its industry, with a market capitalization of over $14b.
Unlike many large companies whose shares exhibit lethargic price movement, its shares are highly active, and consistently making big moves.
As its shares pull back, where's a favorable price area to buy them and ride the next big move up?
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 RPM (RPM)
The very 1st thing I want to know is the
trend of RPM'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 uptrend. Hence, I'd like to find an opportunity to buy 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 stronger-performing stock is likely to continue to soar 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 risen 5% over the past 3 months, the shares of RPM have soared over 19%! That's close to a 4x outperformance!
I'm excited. I can't wait to buy its shares for an explosive swing trade.
Should I do just that now?
How Explosive Is RPM (RPM)?
No, I shouldn't rush to short its shares without a deeper analysis.
Since I plan to buy its shares and capitalize on its next upmove 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 upwards.
Have the shares of RPM been able to explode upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 21 explosive upmoves, with each measuring between 4.3% and 18.8%!
I got more excited when I discovered the size of RPM.
This company enjoys a large market capitalization of over $14b! It's no easy feat for the shares of such a company to explode in price consistently.
Additionally, I appreciate that RPM enjoys a market capitalization of over $14b, as 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 RPM 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 buy the shares of RPM 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 rising by more than 11% in 1 week, its shares have begun pulling back.
Oh, did you notice that its shares have pulled back to its support area around $112? I'd like to see a bounce when the market opens before buying its shares 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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