Months ago, Liberation Day took place.
That was the day US President Donald Trump announced tariffs on countries around the world. Singapore wasn’t spared.
Many countries got hit hard, with some of them being close allies with the US.
The tariffs divided the US. While President Donald Trump assured the public that the tariffs wouldn’t affect inflation, businesses thought otherwise.
On Fri night, President Donald Trump delivered this piece of great news – tariffs on food imports are coming down with immediate effect. Beef, coffee, and tomatoes are among the list of food imports to enjoy lowered tariffs.
This brought cheer to the market as the US continues to battle high grocery prices.
Will the prices of groceries and food fall in response? Maybe by just a little.
However small, a drop in grocery prices could lead to a positive chain of events for consumers, benefitting this week’s stock pick.
Before I analyze this week’s stock pick, let’s review last week’s #PowerStocks pick: Cardinal Health (CAH).
Review Of Last Week’s Pick Of The Week
Cardinal Health (CAH) was last week’s #PowerStocks pick.
It’s the world’s 9th largest healthcare company, worth nearly $50b.
Instead of pulling back after a meteoric 33.5% rise in 3 weeks, its shares continue to soar.
But weakness is creeping in.
Am I revising my trade plan?
What’s the entry price I’m waiting for?
Head over to my Telegram Channel to find out!
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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.
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Why Is Swing Trading Sphere Entertainment (SPHR) Worth It?
Source: sphereentertainmentco.com
Sphere Entertainment is a media company that provides live entertainment, live sports events, and other programs.
Blessed with a $2.7b market capitalization, Sphere Entertainment is a growing and respectable media company.
While the bears are out to play in the US stock market, Sphere Entertainment’s shares are untouched.
Instead, the bulls are firmly in charge, sending the share price of Sphere Entertainment higher by between 4.7% and 49.4% each time!
After rising hard by 27%, its stock looks to be pulling back.
This is great news because I would like to buy its shares and capture 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 Sphere Entertainment (SPHR)
The very 1st thing I want to know is the trend of Sphere Entertainment’s shares.
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.
Looking at the chart above, its shares are in a steady and strong 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 bringing a larger-than-market return. So, I’ll take another look at the comparison chart above.
While the S&P 500 has risen 4.4% over the past 3 months, the shares of Sphere Entertainment have risen by a mind-boggling 93.4%! That’s more than a 21x 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 Sphere Entertainment (SPHR)?
No, I shouldn’t rush to buy 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 Sphere Entertainment been able to explode upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 23 explosive upmoves, with each measuring between 4.7% and 49.4%!
I got more excited when I discovered the size of Sphere Entertainment.
This company enjoys a mid-sized market capitalization of over $2b! It’s no feat for the shares of such a company to explode in price consistently.
Additionally, I appreciate that Sphere Entertainment enjoys a market capitalization of over $2b, 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 Sphere Entertainment for an explosive swing trade?
Key Price Levels
Timing is crucial for many things in life. This includes stock trading and investing.
Buying 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 Sphere Entertainment 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 27% in under 2 weeks, a pullback is here.
Where are the shares of Sphere Entertainment likely to pull back to?
Referring to the chart above, its shares are likely to fall to around $74 before heading higher once again.
Therefore, I won’t want to buy its shares for an explosive swing trade now. Rather, I’ll wait for its shares to pull back to around $74 and bounce before catching them to ride its next huge 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.
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Worse still, ~80% of traders lose money.
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