Breakout Trend Following Trade Ideas for Jan 2017:
I hope you’re looking for breakout stock picks today… BECAUSE that’s what I’ve got for you! With the S&P-500 breaking out to new all-time highs AGAIN this week, bulls have their pick of the litter.
For confirmation, look at the weekly chart of the NYSE cumulative advance-decline. That’s a lot of new highs.
Further, even though the indices pulled back a little bit to end the week, FinViz still shows 374 new 52-week highs, vs only 55 52-week lows.
Take a look at all these winners:
For me, all this is confirmed by the absolute plethora of breakouts we saw this week. Seriously…
Stocks I’ve been holding for months just suddenly took off like a rocket.
So if you haven’t been following along…
Check out the moves in TTC, TXN, ROK, ROL, RACE and MSFT this week. Even the recently featured PH is off to a strong start! As long as you have a risk management plan for selling your stocks, I think you can still jump on these trends.
This isn’t to say all of our picks are winners. But if you learn to sell your stocks quickly when things go wrong you end up with a portfolio of winners. Anyways…
Here are the other trend following stock picks I’m looking at as we close out the first month of 2017.
January 2017 Trend Following Stock Trade Ideas:
As we close out the first trading month of the year, I want to share ideas of stocks that are in uptrends, and that look poised to continue. By the way, if you’re wondering how I find these stock picks you can read more about how to find breakout trade ideas.
Now for the new ideas…
First up, one stock pick that has caught my eye is Analog Devices Inc (NASDAQ:ADI). This stock closed the week on a very strong note, and I’ll be curious to see if it can follow through after a few weeks of consolidation.
Take a look:
While I don’t currently own shares of ADI, the chart above illustrates how I would be looking to build a position and manage risk.
I’m not sure if I mentioned it, but I’m looking to take a trip in the next few months. And since booking hotels through Priceline.com (NASDAQ:PCLN) was so easy, I decided to look at the stock chart of the company.
Lo and behold, PCLN is breaking out to new highs. I actually own a share of this company already and have locked-in profits by trailing my stop loss. Now with this ongoing uptrend, I’ll be looking to add to the position based on the chart above.
Next up is Applied Materials Inc (NASDAQ:AMAT). Personally, I don’t love the fundamentals of this company – as management has been unable to grow earnings per share in any meaningful way over the last 10 years. But…
Nonetheless, the stock continues to march higher in a clearly defined uptrend. So for now I’m willing to hold my nose, use a hard stop-loss and try to jump on this profit train. Here’s how I’d play a trade in AMAT:
While DIS has some problems related to their ESPN business, the company is a money-making franchise that I’m happy to have a piece of, especially given the recent share price rally back to 52-week highs.
Personally, I’m only up about 2% on my DIS position so I don’t think it’s too late to add considering the strong end-of-week stock performance. The chart above should give you an idea of how to position for a breakout in DIS.
The last trade set-up I want to share with you is another one that continues to work well for me. So what is it? Tessera Holding Corporation (NASDAQ:TSRA)! Check out the chart below.
To my eye, the chart of TSRA looks quite strong. I particularly like how the stock closed the week near recent highs. And if the momentum can continue this uptrend will have room to run. Again, just be careful to set a stop loss.
So there you have it! I hope these stock charts can help you find potential trend following ideas in the market. And remember, these are all ideas that I’m personally acting on or strongly considering. So if you like what you see, sign-up to get notified of future free stock picks.
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