We are fast approaching the end of the Lunar New Year.
What did you like most about this Lunar New Year?
Personally, I love the gathering of friends and family. The warmth it brings to my heart is touching. What comes next is also highly anticipated – the tossing of Yu Sheng.
The tossing of Yu Sheng tends to get a little rowdy and messy, but done in the name of good fun.
What else do I find to be fun?
Trading the US stock market.
Before sharing my findings for this week’s #PowerStocks pick, are you curious to find out how the stocks shared in February performed?
- Monster Beverage: 4.9% gain
- CME: No entry
- Textron: No entry
- ON Semiconductor: 3.5% loss
February continued what January did: going sideways, firmly locked between 676 and 697.
With more uncertainty ahead – geopolitical tensions in the Middle East, war still raging on in Europe, and the new tariffs, the S&P 500 fell by 0.8%.
But how did our #PowerStocks pick perform?
The trade on Monster Beverage took some time, and it delivered a sweet 4.9% return.
CME and Textron didn’t pull back to the price zones I was expecting. Instead, they rose, leaving me on the sidelines. Oh well, this is part and parcel of trading.
The trade on ON Semiconductor began on a promising note. I’ll share more of ON Semiconductor in the next section.
Our #PowerStocks returned an average of 0.7%, while the S&P 500 lost 0.8%.
Is it time to be aggressive in our trading? Because I think that we should continue to experience heightened volatilty, it won’t be a good idea to be aggressive.
Review Of Last Week’s Pick Of The Week
ON Semiconductor (ON) was last week’s #PowerStocks pick.
It’s an important player in the smart manufacturing industry, providing intelligent power and sensing solutions.
Although it enjoys a large market capitalization of over $27b, its shares are nimble, constantly exploding higher.
As its shares were pulling back, I’d identified a support zone to buy its shares after the bounce.
The shares of ON Semiconductor did exactly that. It had bounced at the price I’ve marked out and rose. But this wasn’t to last, at least for now.
Its share price made a U-turn and fell 3.5% below my entry price.
Am I looking to hold onto this trade?
I’ve shared it 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 United Parcel Service (UPS) Worth It?
Source: ups.com/us/en/home
United Parcel Service (UPS) is a well-known package courier company. It leverages supply chain management solutions to provide speedy and safe delivery services worldwide.
With a market capitalization of over $98b, United Parcel Service is the world’s largest courier company.
While the shares of many large-cap companies languish, the same cannot be said of United Parcel Service’s. In the past 11 months, its shares have shot up 17 times, each time measuring between 4.2% and 22.3% in just days!
I’d love to buy its shares to catch its next explosive move.
What’s the price area I’m waiting 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 United Parcel Service (UPS)
What’s the very 1st thing I would like to analyze from this chart above?
The trend of United Parcel Service’s shares (shown in blue).
This is because knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity. By following its price trend, I’ll greatly increase my chances of profitability.
Looking at the chart above again, I see that the share price of United Parcel Service is in a strong uptrend! Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare its share performance to that of the S&P 500 (shown in black).
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 by 0.3% in the past 3 months, the shares of United Parcel Service have risen by an astonishing 21%, or 70x more!
I love such an outperformance, and I’m ready to buy its shares for an explosive swing trade.
But are there more to analyze?
How Explosive Is United Parcel Service (UPS)?
Yes, there are more pointers to analyze before pulling the trigger to buy its shares for a swing trade.
Because I aim only to ride its upmoves, which typically last for a couple of weeks, I want the shares of United Parcel Service to have the ability to explode upwards.
Have the shares of United Parcel Service proven to be explosive?
Marking out its explosive moves in the past 11 months left me speechless.
There are 17 explosive upmoves, and each of them measures between 4.2% and 22.3%!
Here’s another fact that blew my mind: United Parcel Service enjoys a huge market capitalization of more than $98b.
For the shares of a company of this size to consistently explode upwards between 4.2% and 22.3% in just days is mind-blowing!
Additionally, I appreciate that United Parcel Service 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 United Parcel Service for an explosive swing trade?
Key Price Levels
Like many things in life, timing is crucial when it comes to stock trading.
Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you’ll doubt yourself even when a fantastic trading opportunity arises straight from under your nose!
But, is there a way to tell whether the time to buy the shares of United Parcel Service is here?
You can do so by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
Given that there’s a support zone around $115.50 and its shares have pulled back, I like what I see!
Have its shares bounced from its support zone?
Yes, they have!
Thus, I would like to buy its shares now 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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Worse still, ~80% of traders lose money.
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