July 17

Swing Trading Opportunity: Moody’s (July 2023)

The financials sector is at it again! 

It has been rising nonstop ever since the banking crisis in US. 

Though it has yet to fully recover from the crisis, many stocks in the financials sector have. This is because they aren’t banks.

As predicted, our swing trading opportunity shared last week has pulled back. This pullback could continue for a while more before an entry based on The Art of Explosive Profits surfaces. 

You’ll want to be prepared for it by reading about the opportunity shared last week. 

This week’s swing trading opportunity also lies in the financials sector. Presenting… Moody’s (MCO). 

Performance Of US Stock Market vs Moody’s (MCO)

Comparison of S&P 500 and Moody's

Glancing at the comparison chart above, you can easily tell that the share price of Moody’s has been rising.

Its shares performance has also been beating the S&P 500 since late April 2023. 

This is an important detail to note. 


The swing trading candidate you have in mind should be outperforming the overall market as you’re seeking for alpha returns.

How Explosive Is Moody’s (MCO)?

Explosive up moves on the chart of Moody's

Knowing that the share performance of Moody’s has been beating the S&P 500, let’s find out if its shares have the capability of explosive up moves.

Based on the chart of Moody’s above, yes, its shares are capable of explosive up moves!

In a short span of 8 months, the shares of Moody’s have exploded in price 14 times! That’s almost 2 explosive up moves each month.

This is stunning for a company that enjoys a massive market capitalization of nearly $65b!

What’s next?

It’s time to uncover its key price levels to know if the time to buy its shares for a swing trade is here. 

Key Price Levels

Support and resistance on the chart of Moody's

Do you see a key price level at ~$348?

That key price level could turn out as a strong support in the near future. 

The share price of Moody’s could continue to rise. But when it finally pulls back, it could pullback to ~$348 before rising again. 

Hence, I’m watching this price area very closely for a swing trading opportunity. 

The Strategy You Can Use To Swing Trade Moody’s (MCO)

After comparing the performance of MCO with the broader US stock market, determining whether MCO 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 MCO fall to $348 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 MCO.

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 MCO Worth It?

MCO logo

Source: moodys.com

This stock has been rising stealthily, beating the S&P 500.

Besides, the shares of Moody’s have proven to be be capable of explosive up moves. The smallest up move measures 4.2% while the largest measures 22.7%! 

While we wait for the pullback, please keep in mind that I’m not a financial advisor, so please treat this as edutainment 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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