What a wet Lunar New Year!
While water signifies prosperity and blessings, the rain has made me lazy to leave my house apart from house visitations.
And I’m delighted to know that many of you have received a nice red packet from the US stock market through JPMorgan Chase’s shares.
JPMorgan Chase’s shares were ripe for a short and explosive swing trade last Monday after a pullback. Its share price proceeded to shoot up by $4.50 (3.5%) in just 1 week!
Instead of rushing to buy its shares now, let’s turn our attention to a gaming company whose share price has been exploding, away from the attention of the media.
This swing trading opportunity for Feb 2023 is Las Vegas Sands.
Performance Of US Stock Market vs Las Vegas Sands (LVS)
It looks like there’s no stopping the bulls in the US stock market!
In Jan 2023 alone, the S&P 500 futures is up 4.8%! This beats its performance of 4.30% and -5.7% in Nov and Dec 2022 respectively.
With a strong gain of 2.3% just last week, it’s natural for many traders and investors to be excited about the stock market again.
However, I’m more cautious because I think that a pullback is on its way.
This is because the S&P 500 has demonstrated time and again that its bullish moves last for a couple of days to a week before pulling back.
Now that you’ve examined the chart of the S&P 500 futures, let’s proceed to have a look at the chart of Las Vegas Sands.
As the S&P 500 futures was trending lower from Aug to Oct 2022, the share price of Las Vegas Sands was ranging and preparing for a liftoff which eventually arrived in Nov 2022.
Its share price continued to skyrocket, gaining 26.2% in Jan 2023 alone!
This makes the explosive performance of the S&P 500 futures child’s play.
Because we are looking for buying opportunities for a swing trade, we will want the candidate to be much stronger than the overall market.
And the performance of Las Vegas Sands’ shares tick fulfills this criteria.
So, shall we analyze the shares of Las Vegas Sands further?
How Explosive Is Las Vegas Sands (LVS)?
The very next step is checking if the shares of Las Vegas Sands have been enjoying explosive up moves in the recent 7 months.
1, 2, 3… 14.
Las Vegas Sands’ shares have proven to be capable of huge and explosive up moves in recent months!
Did you also know that Las Vegas Sands is the world’s 380th largest listed company by market capitalization? It has an astounding market capitalization of $45b!
For a company this huge to enjoy 14 explosive up moves measuring between 5.6% and 26.2%, I’m in awe.
Now, this is one super stock that I’ll want to be prepared for.
Key Price Levels
Knowing that Las Vegas Sands’ shares have the tendency to explode in price, let’s uncover its key price levels to determine whether we should buy its shares for a swing trade now.
Looking closely at its chart, you can uncover an immediate support area at about $55.
Yes, key price levels are also known as support and resistance areas as prices tend to bounce off these areas.
As it stands, the share price of Las Vegas Sands is quite a distance away from its immediate support area at about $55.
In addition, Las Vegas Sands’ shares have risen by 26.2%!
Given that bulls (and bears alike) require a period of rest before the next leg up (down for bears), I think that the share price of Las Vegas Sands could pullback next week, alongside the S&P 500 futures.
Therefore, the time to buy shares of Las Vegas Sands isn’t here yet.
It’s a better idea to wait for a pullback to around $55 before considering buying its shares for a swing trade.
This brings me to the part on strategy.
The Strategy You Can Use To Swing Trade Las Vegas Sands (LVS)
After comparing the performance of LVS with the broader US stock market, determining whether LVS 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 LVS pullback to around $55 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 period of time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading like LVS.
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 to your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading LVS Worth It?
The S&P 500 future has risen hard in the past week. Past rise in the S&P 500 futures lasted for a week or so before pulling back.
This is good news for us because LVS is stronger than the S&P 500 futures, has proven to be capable of explosive up moves of at least 5.6%, and has been soaring for 1 month now!
Swing trading LVS on the pullback helps to reduce your market risks and increases your chances of success.
So, I’ll be waiting for its price to fall to around $55 before deciding on an entry.
For now, continue to watch its development and prepare for an entry via cash or CFD.
While I await the opportunity, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.
Lastly, all photos and images are from unsplash.com, pexels.com, pixabay.com, and tradingview.com.
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