Did you also nearly forget to celebrate Valentine’s Day?
This year’s Valentine’s Day is just days before the Lunar New Year. After performing spring cleaning and decorating the house, Valentine’s Day almost slipped my mind.
Next up, Lunar New Year. Let’s enjoy our gatherings, feasts, conversations, and fun! If you aren’t celebrating Lunar New Year, have a restful time.
The S&P 500 has been indecisive in recent months, unable to break out of its current price range of between 676 and 697. Is this ranging motion likely to continue?
I think so.
While this price action continues, I’ve uncovered a stock that could hugely benefit from the current macroeconomic and market conditions.
But before I share my findings,, let’s review last week’s #PowerStocks pick: CME (CME).
Review Of Last Week’s Pick Of The Week
CME (CME) was last week’s #PowerStocks pick.
It’s a massive financial institution that controls several commodities exchanges in the US.
Despite its enormous market capitalization, its shares have been exploding higher continually.
After rising by more than 15% in a month, is a pullback here?
Yes, a pullback is here. But I’m still waiting for its shares to reach around $291 before buying them to catch its next huge upmove.
Where am I looking to take profit if this trade turns out as planned?
Head over to my Telegram Channel to find out!
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 Textron (TXT) Worth It?
Source: Textron.com
Textron is in the business of manufacturing and selling aircraft, including helicopters, for commercial and military use. The company also supplies spare parts and provides financing.
Enjoying a market capitalization of over $17b, Textron is the 8th largest aircraft manufacturer in the world.
Despite this large market capitalization, its shares are explosive, rising 20 times over the past 11 months, with each move ranging from 4.3% to 24.8%.
After rising by 19.5% in 2 weeks, its shares are pulling back. I sense a fantastic opportunity to buy its shares and ride its next big upmove coming.
What’s my game plan?
Where’s a favorable price area I’m watching 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 Textron (TXT)
The very 1st thing I want to know is the trend of Textron’s shares.
Knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Looking at the chart above, its shares are in a strong uptrend. Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare the performance of Textron’s shares 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 3.2% in the past 3 months, the shares of Textron have risen 20.1%, or over 6x more!
This outperformance is highly welcomed, and I’m all ready to buy its shares for an explosive swing trade.
But, am I missing anything?
How Explosive Is Textron (TXT)?
Yes, it’s premature to buy the shares of Textron just yet.
Because I aim to buy its shares and ride its next upmove instead of going through the ups and downs, my holding period will be approximately a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Textron been exploding upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 20 explosive upmoves, and each of them measures between 4.3% and 24.8%!
This is made even more impressive when I discovered the size of Textron.
Textron enjoys a huge market capitalization of over $17b!
For the shares of a company of this size to consistently explode upwards between 4.3% and 24.8% is mind-blowing!
Additionally, I appreciate that Textron 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 Textron for an explosive swing trade?
Key Price Levels
Timing is crucial for many things in life. This includes stock trading and investing.
Have you bought an explosive stock without checking whether the time is ripe?
How did it turn out?
Chances are, you suffered significant losses and emotional distress.
Because you lost confidence and doubted yourself, you missed the next fantastic trading opportunity when it arose straight from under your nose!
That’s not what I want, so I’m going to uncover the key price levels of Textron’s shares.
Yes, key price levels are also known as support and resistance zones. I’ve also marked out its support area in the chart above.
After rising 19.5% in 2 weeks, a pullback is here.
I anticipate that the shares of Textron will pull back to around $95.50 before rising again.
Therefore, I’m waiting for the scenario mentioned above to take place before buying its shares on the bounce (off $95.50) 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.
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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.
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