Looking for trend following stock picks? Well, it was another tough week in the market for bulls. Doug Short’s chart below shows that we’re mired in a bit of a short-term downtrend.

trend following trade ideas for november 2016 part 1 - weekly downtrend.png

And the weekly chart of the SPY shows stocks remain stuck in a range. We are near all-time highs, but haven’t been able to breakout since July.

For now, most stocks are just flip-flopping around. Given that we’re in the heart of earnings season though, maybe this is what should be expected.

trend following trade ideas for november 2016 part 1 - weekly chart.png

However, this is also the most bullish 5-day period of the year, so it will pay to be prepared. With that in mind, let’s look at some stock picks that might present profit opportunities in the week ahead.

Trend Following Stock Picks for November 2016:

Even though the market hasn’t been strong, and a lot of breakouts have failed recently, it pays to keep looking for stock picks. We want to be ready for when the market does eventually start rewarding stock market bulls again. Luckily, despite the poor headline results, there’s lots going on under the surface.

One stock that I’m long right now, and which finished the week on a high note, is Mastercard (NYSE:MA). Given this strength, I added to my MA position just before the close on Friday. In case you missed it, I also wrote an analysis of MasterCard on Seeking Alpha a few weeks ago.

trend following trade ideas for november 2016 part 1 - weekly chart.png

Another stock pick that shows no signs of slowing down is Domino’s Pizza (NYSE:DPZ). This trend has been an absolute monster. And given the company’s most recent earnings results it doesn’t look like it will be slowing down. The strong buy volume also confirms this. Take a look.

trend following trade ideas for november 2016 part 1 - weekly chart DPZ

Unfortunately, I have been asleep at the wheel and don’t own shares of DPZ, yet. I’d be looking to buy shares on continued strength with a stop-loss order about $12 below my entry.

Another large cap stock in an uptrend, which I think deserves attention is Northrop Grumman (NYSE:NOC). Longtime readers know I’ve been bullish on defence stocks for quite some time. I’ve previously had profitable trades in RTN and HII. But today I want to focus on the strength, and my recent purchase, in NOC.

trend following trade ideas for november 2016 part 1 - weekly chart NOC.png

The last idea I want to share this week is another large-cap stock that posted strong earnings results this week, and even increased their dividend. Again, sorry for the lack of small cap ideas this week, but as a whole that group hasn’t been very strong lately. So instead I’ll share Texas Instruments (NASDAQ:TXN).

While I’m already long shares of TXN, I think the stock is doing a good job consolidating near all-time highs. If it can continue to push higher I’ll consider adding to my position.

trend following trade ideas for november 2016 part 1 - weekly chart TXN

And hey, I know it can be uncomfortable to add to positions at new highs. But often the trades that are emotionally and psychologically challenging are the ones you need to take. Plus, if the market is giving you a winner, why not make the most of it?

Now, before we wrap this up, I just want to remind you that you can sign up for free to get notified of trend following stock picks like this in the future. It’s easy, it’s free and you’ll get 3-5 of my favourite stock picks sent to your inbox each week. Sign up here today.

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