Have you noticed the many anti-drugs messages all over Singapore?
Singapore has always taken a zero-tolerance approach to drugs.
Today, stiffer penalties come into effect to combat this invisible crisis.
As we combat this crisis at home, is a crisis brewing in the US?
Its stock market suggests that things are rosy at the moment, and these good times could last for some time.
Are you curious to find out how the stocks shared in August performed?
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Citigroup: No entry
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General Dynamics: No entry
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Arista Networks: 2.1% and counting
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Agnico Eagle Mines: 4.6%
- Etsy: No entry
August began with a scare.
A 1.6% drop in the S&P 500 shook global confidence.
Thankfully, this drop ended on the same day, and the bulls took full control, pushing the S&P 500 higher for almost 2 weeks.
The loudest cheers came last Friday when Fed Chair Jerome Powell signalled that 2 interest rate cuts are expected later this year.
While the S&P rose by 2% in August, how have our #PowerStock picks performed?
There were no entries for the trad ideas on Citigroup, General Dynamics, and Etsy.
Armed with a clear trading plan, I was saved from misery and heartache, especially on Etsy.
On the other hand, the trade ideas for Arista Networks and Agnico Eagle Mines proved successful, bringing a 3.3% return compared to a 2% return by the S&P 500.
Shall we review last week’s #PowerStocks pick, Etsy (ETSY), to uncover the reason for a no entry?
Review Of Last Week’s Pick Of The Week
Etsy (ETSY) was last week’s stock pick.
It’s 1 of the world’s largest e-commerce platforms.
After rising by over 27.4%, its shares began to pull back.
I’d anticipated its shares to rise and break above $63.60, but that didn’t happen.
Instead, its shares continued to slide. Thanks to my trade plan, I didn’t have to battle my emotions when there was clearly no entry. This had saved me from unnecessary losses and heartache.
I’ve also shared a follow-up on this trade idea in my Telegram Channel.
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 State Street (STT) Worth It?
Source: statestreet.com/us/en
State Street is 1 of the largest financial institutions in the world, worth over $32b.
Despite its huge market capitalization, its shares have consistently burst upwards in price.
In the past 11 months, its shares have burst upwards 19 times, with each measuring between 4.4% and 30.5%!
A pullback is here, and I’m waiting for it to return to this price area before I buy them to ride its next burst up.
What’s the price area I’m waiting 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 State Street (STT)
What’s the very 1st thing I would like to analyze from this chart above?
The trend of State Street’s shares.
This is because knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity. By following its price trend, I’ll greatly increase my chances of profitability.
Looking at the chart above again, I see that the share price of State Street is in a strong uptrend! Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare its shares performance 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 return that exceeds the market’s. So, I’ll refer to the comparison chart above again.
While the S&P 500 has risen by 9.2% in the past 3 months, the shares of State Street have risen by 18.4%, or 2x more!
I love such an outperformance, and I’m ready to buy its shares for an explosive swing trade.
But are there more to analyze?
How Explosive Is State Street (STT)?
Yes, there are more pointers to analyze before pulling the trigger to buy its shares for a swing trade.
Because I aim only to ride its upmoves, which typically last for a couple of weeks, I want the shares of State Street to have the ability to explode upwards.
Have the shares of State Street proven to be explosive?
Marking out its explosive moves in the past 11 months left me speechless.
There are 19 explosive upmoves, and each of them measures between 4.4% and 30.5%!
Here’s another fact that blew my mind: State Street enjoys a huge market capitalization of more than $32b.
For the shares of a company of this size to consistently explode upwards between 4.4% and 30.5% is mind-blowing!
Additionally, I appreciate that State Street enjoys an enormous market capitalization, 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 State Street for an explosive swing trade?
Key Price Levels
Like many things in life, timing is crucial when it comes to stock trading.
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!
But, is there a way to tell whether the time to buy the shares of State Street is here?
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.
Given that there’s a support zone around $113.50 and its shares are pulling back, I anticipate that they will fall to around $113.50 before rising again.
Therefore, I’m waiting for the above-mentioned scenario to happen before buying its shares on the bounce off $113.50 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!
