Free Trend Following Trade Ideas For June 2019 (Part 2):
The bulls are back in town! Because while sellers were in control throughout the month of May, June started off with a bang. So let’s take a closer look at this strength, and whether the good times might be able to keep rolling into next week.
Alright, as usual I want to start off with a bit of a big picture recap. And then I’ll update you on some recent trades of my own, as well as share some ideas for next week. Sound good?
Great! Then let’s dive in…
June 2019 Stock Market Update – Bounce Edition:
There’s no beating around the bush here: buyers came out with intent, and finished the week on a high note. Impressively, this buying was present across the board. So let’s take a closer look at that price action to get started.
What a Bounce From Bullish Buyers!
Taking a look at the index weekly charts, you can see what a strong bounce it was across the board. Almost incredibly, last week’s extensive downside damage has pretty much all been repaired. Just like that!
So first, take a look at SPY:
It’s hard not to notice the sheer size of this candle. From start to finish, bulls were in the driver’s seat. And when you zoom into the daily timeframe, you can see the 200-day moving average was once again the line in the sand.
For now, it looks like SPY has been able to hold above this long-term trend indicator. And since it’s not yet overbought in the short-term, perhaps the rally can keep running. After all, it’s not just US large-caps that are acting well.
Because small caps and European stocks also got in on the bounce. To keep tabs on the former, you can take a quick look at the IWM ETF. This proxy for the Russell 2000 small caps held support too…
Now to be fair, this group of stocks is still in a bit of a trading range well below prior highs. But at least we didn’t see a complete collapse, which looked to be an option last week.
Encouragingly, European stocks also got in on the fun, with VGK reversing from its pullback.
So keep an eye out for more upside momentum, as this could be a higher low taking shape. And the good news is, to some extent I think this broad bounce in stocks around the world was also reflected in currency markets, with the dump in the US Dollar index…
Weakness in the dollar can generally map to strength in equities as US multinationals report even international earnings in dollars.
Now, with the market acting well last week, I actually found a couple of swing trade ideas this past week. I’m sorry to not have blogged about them in real-time. But it was a busy week and I had trouble finding the time to write. That said, these are still fresh and open trades so let me fill you in.
Swing Trading Updates – June 2019 Part 2:
A few weeks ago, I mentioned I was going to start documenting some swing trades here on the blog. But unfortunately, the market hadn’t been too accommodative since. Luckily that all changed this week.
So first, I picked up a small position in eHealth Inc. (EHTH). I had a great trend following trade in this one last year. And now I’m hoping it can keep moving again.
Here’s how I’m managing the trade:
With any luck, this one will be able to keep trending higher as it closed the week near highs. Along the same lines, I also picked up a couple shares in NeoGenomics (NEO), as biotechs are acting strong and the chart is near highs.
This one is a little bit bumpier, but that’s why I’m keeping positions small. Here’s the daily chart of NEO, which is how I’m managing these swing trades.
Now, with the market bouncing well, there are finally some breakout stock picks to keep an eye on. So let me show a few of my favourites charts that came up in my stock screening this weekend…
Trend Following Trade Ideas For June 2019 (Part 2):
With some momentum coming back into the market after a slow May, there’s suddenly a number of stocks that are starting to break out again. So let’s take a closer look at a few of the leaders that are emerging from recent consolidations.
First up is Appfolio (APPF). This one has been a favourite of mine in the past, and since it’s a member of the sofware-as-a-service industry, it could benefit from some top-down momentum.
With the stock in blue sky territory after a few weeks of tight consolidation, I’m optimistic this could keep trending. And interestingly enough, it’s not the only chart that looks this way.
Along the same lines, I also like the way Chemed (CHE) has been acting lately. In fact, this one has finally made a significant new high recently, and looks like it could be the start of another leg higher…
If this train is leaving the station, I’d be curious to get on for the ride. Similarly, Microsoft (MSFT) also looks like it might be ready to run again. Take a look…
With MSFT emerging from a trading range and closing the week at new highs, I’m wondering if this could be a sign of more upside to come. If nothing else, seeing a large-cap name like MSFT getting some momentum feels like an encouraging sign.
Now the good news is, there’s also opportunity at the other end of the market cap spectrum. So for those of you that like lower-priced stock ideas, one idea on my radar is Wendy’s (WEN).
It’s a little bit of a bumpy uptrend. But overall this stock is moving in the right direction and as long as you manage risk, hopping along for a ride could be worthwhile.
Now before we finish…
I also want to share my existing trend-following trading positions for US-listed stocks with you. So here they are in a FinViz watch list! Take a look if you’re still itching for more potential trade ideas.
They might be of interest because everything is laid out in charts so you can easily see what’s what.
Because actually, there have also been a lot of great trends this week so I’m quite bullish on many of my existing holdings.
I hope seeing my current stock portfolio helps give you more context on how I’m seeing the current market, AND, where I’m placing my bets.
While I’ve obviously shown you some of my favourite picks for the week ahead, I can also help teach you how to fish for your own trading ideas!
Just keep reading.
Learn How to Scan For Breakout Stock Picks:
If you want to learn more about how I find these kind of stock picks, I encourage you to check out my Breakout Stock Blueprint. What’s that, you ask?
Well… it’s a +90-page PDF… packed with everything I know about finding, buying and trading breakout stock picks.
This Blueprint shares the EXACT step-by-step process I use to find and trade stock picks each week (just like the ones above). So…
If you want to see how to find high-potential-momentum stock picks, learn how to let your winners run and be confident about locking in profits, then this Blueprint is for you.
Can This Blueprint Improve Your Trading?
Learn how I find and trade breakout stock picks… in under an hour each day!