The June holidays have just ended.
What’s the most interesting moment with your family this summer holiday?
I’m glad to spend more time with my daughter. We explored places together and had lots of time playing.
I hope to continue spending moments like these for many more years to come, before she turns into a teenager and no longer wants to spend time with me.
Switching back to the stock market, are you curious to find out how the stocks shared in June performed?
- Constellation Energy: 9.5%
- CF Industries: No entry
June began brightly, with the S&P 500 rising from where it had left off.
Then, things changed when war broke out between Israel and Iran. This shook the US stock market momentarily before the S&P 500 continued to rise, ending the month 4.3% higher and forming a new all-time high last Friday.
Switching to the stock picks shared in June, Constellation Energy performed extremely well.
Its shares had pulled back to the anticipated price area and rocketed 9.5% in just 2 days! This is 1 of the fastest trades I’ve taken.
Fortunately, my game plan for CF Industries saved me from misery. I had planned to buy its shares for an explosive swing trade if this criterion was met.
It wasn’t met, and so I’d scrapped this trade plan.
I’ll share more details in the next section.
Review Of Last Week’s Pick Of The Week
CF Industries was last week’s stock pick.
The company is a manufacturer and supplier of fertilizers, supplying fertilizers to countries in North America and Europe.
After a huge rise of 22%, a pullback was due.
I had anticipated its pullback to end at around $96, rising thereafter. However, the market had other plans.
Its share price continued to plunge, invalidating my trade plan.
Therefore, I’ve scrapped this trade idea.
I’ve also shared this update 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 Synchrony Financial (SYF) Worth It?
Source: synchrony.com
Synchrony Financial is a financial institution that provides financial services to individuals and businesses.
It enjoys a huge market capitalization of over $25b, ranking it the world’s 152nd largest bank.
Despite its huge market capitalization, its shares have proven to be wildly explosive!
In the past 11 months, its shares have shot upwards 18 times, ranging from 4% to an eye-popping 50.3%.
I sense a pullback nearing, and a fantastic explosive swing trading opportunity is likely to emerge.
How do I plan to seize this explosive swing trading opportunity?
What’s the price area I’m waiting for?
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 Synchrony Financial (SYF)
After a drop in its share price in Apr, Synchrony Financial’s shares have been soaring!
This mighty uptrend caught my attention because of the opportunity to buy and profit from its shares.
But before I jump into buying its shares, it’s a good idea to analyze further to increase my chances of success.
Let’s examine its relative performance against the S&P 500.
Looking at the comparison chart above, can you tell which is the stronger performer?
While the S&P 500 rose 8.4% in the past 3 months, the shares of Synchrony Financial rose 22.2%!
That’s a 2.6x outperformance!
Given that this stronger bullish momentum is likely to persist, I’m interested in purchasing the shares of Synchrony Financial to potentially enjoy a higher-than-market return.
But before I buy its shares, is there more to analyze?
How Explosive Is Synchrony Financial (SYF)?
As a swing trade, I’d like to buy shares and hold them for a few days to a couple of weeks. Thus, I’d like the shares I buy to explode upwards in price.
To increase my chances of success, I’ll uncover whether the shares of Synchrony Financial tend to explode upwards in price.
I like what I’ve found!
Over the past 11 months, the shares of Synchrony Financial have exploded upwards 18 times, with each upmove measuring between 4% and 50.3%!
This is made more remarkable by the huge market capitalization it enjoys – over $25b.
Why is knowing its market capitalization important?
A company that enjoys a huge market capitalization provides an additional 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 Synchrony Financial for an explosive swing trade?
Key Price Levels
Nope!
I’d like to conduct another layer of analysis to maximize the potential of this trade and minimize my risk of loss.
After all, no one likes losing money.
Here, I’ll be uncovering the key price level (aka support and resistance) of Synchrony Financial’s shares.
This will tell me where its shares are likely to turn at, providing me with a more optimal entry point.
Did you identify a key price level at around $64?
After rising 10% 9 days, I sense a pullback coming.
And when it comes, there’s a strong chance for its shares to drop to around $64 before rising.
Therefore, I’m waiting for the above-mentioned scenario to happen before buying its shares on the bounce off $64 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.
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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?
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