President Donald Trump toured Asia last week, beginning with Malaysia. He was warmly welcomed with music and dance, which he appreciated by breaking out into his signature dance move.
The trip was eventful, as many trade deals were struck.
All eyes were on the meeting between President Donald Trump and President Xi Jinping, as it was probably the most important trade deal. I'm glad things turned out well.
Before sharing my findings for this week's #PowerStocks pick, are you curious to find out how the stocks shared in October performed?
-
Robinhood Markets: 13.7%
-
L3Harris: No entry
-
Eversource Energy: 4.2%
-
BridgeBio: 5.1%
- RTX: No entry yet
October resumed where September had left off, forming multiple new all-time highs in the process.
But given the volatile personality of President Trump, this smooth bullish move was about to be rocked.
President Trump posted a tweet threatening to impose new tariffs on China. This sent the S&P 500 lower by 2.7%, erasing 3 weeks' worth of gains.
It took a while for the market to recover and eventually form new all-time highs again.
In October, the S&P 500 rose by 2.3%.
How did our #PowerStocks picks perform?
There was no entry for L3Harris, while I'm still waiting for an entry for RTX. Robinhood Markets, Eversource Energy, and BridgeBio performed well, bringing a return of 7.6%.
Shall we review last week's #PowerStocks pick,
RTX (RTX)?
Review Of Last Week's Pick Of The Week
RTX (RTX) was last week's #PowerStocks pick.
It's the world's 2nd largest defense company, enjoying a market capitalization of almost $240b.
After exploding higher by 14.4%, its shares began pulling back.
However, this pullback is not yet complete.
I've identified a strong support area around $170.50, so I'm expecting its shares to continue pulling back.
But, there's a condition.
What's this condition?
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 Universal Health Services (UHS) Worth It?
Source: uhs.com
Universal Health Services is a leading healthcare service provider in the world, worth over $13b.
Despite its huge market capitalization, its shares have consistently burst upwards in price.
In the past 11 months, its shares have burst upwards 21 times, with each upmove measuring between 4.6% and 16.1%!
A pullback is here, and I'm waiting for it to return to this price area before I buy them to ride its next burst up.
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 Universal Health Services (UHS)
What's the very 1st thing I would like to analyze from this chart above?
The
trend of Universal Health Services' 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 Universal Health Services 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 7.9% in the past 3 months, the shares of Universal Health Services have risen by 30.3%, or 3.8x 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 Universal Health Services (UHS)?
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 Universal Health Services to have the ability to explode upwards.
Have the shares of Universal Health Services proven to be explosive?
Marking out its explosive moves in the past 11 months left me speechless.
There are 21 explosive upmoves, and each of them measures between 4.6% and 16.1%!
Here's another fact that blew my mind: Universal Health Services enjoys a huge market capitalization of more than $13b.
For the shares of a company of this size to consistently explode upwards between 4.6% and 16.1% is mind-blowing!
Additionally, I appreciate that Universal Health Services 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 Universal Health Services 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 Universal Health Services 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 $210 and its shares are pulling back, I anticipate that they will fall to around $210 before rising again.
Therefore, I'm waiting for the above-mentioned scenario to happen before buying its shares on the bounce off $210 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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