Have you met with an accident, yet felt so thankful?
I met with an accident while cycling and suffered abrasions all over my body.
Yet, I was thankful because my injuries could’ve been much worse, and I felt the care from my loved ones.
Thank you for all your care and concern!
Shall we have a review on last week’s swing trading opportunity: CNX Resources (CNX)?
CNX Resources’ shares dropped last week as expected.
I think that its share price could continue to drop, and I’m still eyeing the price area of ~$20.50 before applying The Arts of Explosive Profits framework.
How do you assess if a stock you’re looking at is worth a swing trade on?
That’s what I’m going to share about using this week’s swing trading opportunity: Marsh & McLennan (MMC).
Performance Of US Stock Market vs Marsh & McLennan (MMC)
Before any stock is considered to by worthy of a swing trade, I compare its performance to that of the US stock market – the S&P 500.
This comparison is important because you’re looking for outsized returns, else you’ll be better off buying the S&P 500 for a swing trade.
A quick glance of the comparison chart above reveals that the shares of Marsh & McLennan have been consistently outperforming the S&P 500.
Furthermore, the share price of Marsh & McLennan has been rising steadily as the S&P 500 has been trending lower in Aug.
The performance of Marsh & McLennan’s shares is beating the market. What else do you need to assess?
How Explosive Is Marsh & McLennan (MMC)?
When you are considering a stock for a swing trade, you’ll also want to know if it has demonstrated its ability to produce explosive up moves.
I’ve marked out all the 6 significant up moves of Marsh & McLennan’s shares for you to have a look.
The up moves range between 3.1% to a stunning 18.2%!
Considering the fact that the market capitalization of Marsh & McLennan stands at $96b, this is magnificent!
So, is it time to buy the shares of Marsh & McLennan for a swing trade?
Key Price Levels
Before you buy any stock, it’s a good idea to uncover its key price levels so that you know if you’re getting the stock at a favorable price.
Yes, these key price levels is also commonly known as support and resistance zones.
Can you see a support zone at ~$192?
With the price of Marsh & McLennan’s shares at ~$194, I won’t want to buy them now.
I’ll be waiting for its share price to pullback to ~$192 in the coming week or so before considering buying its shares for a swing trade.
The Strategy You Can Use To Swing Trade Marsh & McLennan (MMC)
After comparing the performance of MMC with the broader US stock market, determining whether MMC 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 MMC pullback and bounce at around $192 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 MMC.
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 MMC Worth It?
MMC is crushing it. It has been outperforming the overall US stock market for months!
In addition, its share price has been rising despite the value of the S&P 500 falling in Aug.
Its shares have shown to be capable of explosive up moves which commands our attention.
While we 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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