Free Trend Following Trade Ideas For June 2019 (Part 4):

Happy Summer! I don’t know about you, but it’s hard not to smile about the long days and warm sunshine. And at a glance, it looks like the stock market climate has warmed up in June too!

So as usual, I’m keen to give you a little tour of the markets this morning and help you prepare for the last full trading week of June. The good news is, we’ve certainly started to see signs of momentum this month!

Plus…

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Now to get started today, let’s first take a look at how the major stock market indexes and asset classes are performing. Then, once we have that context in mind I’ll show you some individual stock charts acting constructive.

June 2019 – Stock Market Performance Summary:

What can I say? In contrast to the 6% drop most indexes saw in May, June has been the exact opposite side of the coin.

SPY Finding It’s Feet at All-Time Highs:

Now starting with the daily, you can see a little bit of back-and-forth the last two days. But importantly, the post-Fed gap higher appears to be holding for now.

Free Trend Following Trade Ideas For June 2019 (Part 4) SPY Daily

And when you zoom out to the weekly chart, you can really see a strong candle showing bulls in control for most of the week…

Free Trend Following Trade Ideas For June 2019 (Part 4) SPY

interestingly, DJIA is also at all-time highs, but QQQ and IWM (which you may consider riskier parts of the market) are still below their prior peaks. For their part, European stocks are also acting relatively well as you can see via the VGK ETF:

Free Trend Following Trade Ideas For June 2019 (Part 4) VGK

Not bad, right?  Well, the really interesting part of all this is how stocks are NOT the only asset class moving.

Crypto, Gold, and Interest Rates All Surging:

In fact, when you look outside of the stock market, there are actually quite a few pockets of momentum that might catch your eye!

First up, gold has been surging so far this year, and it continued to demonstrate positive price action this week. And hey, maybe it has something to do with all that central bank buying?

No matter the cause, the yellow metal is set to break out of a multi-year consolidation pattern. Just take a look at this long-term chart:

Free Trend Following Trade Ideas For June 2019 (Part 4) GOLD

Now to be sure, gold-related plays do tend to be volatile (especially if you’re dabbling in the junior minors). But overall, this is an interesting area to look for some alpha.

It’s also notable since both gold and bitcoin are moving higher, with the latter finally back in the five-figure range more consistently.

Oddly enough…

Bonds are also showing some signs of volatility at 52-week highs. One example is the TLT ETF, which continues to benefit from falling bond yields and perceived central-bank dovishness.

Here’s the weekly view:

Free Trend Following Trade Ideas For June 2019 (Part 4) TLT

Now in general, you might not expect bonds, gold and stocks all to be rallying at the same time. But perhaps, the thread tying it all together is a sagging US Dollar.

Here’s the weekly chart of the USD Index, which is starting to slump after a bumpy grind higher most of the year:

Free Trend Following Trade Ideas For June 2019 (Part 4) USD

So personally, I think this trend is one to keep an eye on. In the past, USD strength has been a big headwind to US multinationals. Further weakness could benefit all the assets mentioned above.

And by the way, I know it’s tempting to play armchair economic strategist. After all, our brains love a good narrative. But you know what?

Rather than try to forecast what all these charts mean for the world, I prefer to just follow the trends, and manage risk along the way.

Speaking of trends, let’s dive into some specific stock charts I’m feeling bullish on.

June 2019 Stock Trade Ideas (Part 4):

So far, June has been a boon to stock market traders. And while it’s normal to get a bit of a pause (profit-taking?) as the indexes return to all-time highs, overall the market appears much more constructive than it did in May.

As a result, I’ve been a little more busy putting money to work. I’ve thrown on a couple-more short-term swing trades, and added to my longer-term trend-following portfolio too.

So let me bring you up to speed!

June 2019 Swing Trading Updates:

In case you missed it, I wrote an update earlier this week explaining how well my recent swing trades were going. Of course, with the market overall surging higher, this is to be expected. Don’t underestimate the top-down impact on your trading results!

Of all my recent swing trades, EHTH does look to be showing the most momentum and finished the week on a high note. In case you’re curious, here’s how I’m managing the trade:

Free Trend Following Trade Ideas For June 2019 (Part 4) EHTH

It’s always nice when you get to trail your stop to breakeven. But as I feared in my last swing trading blog, some of my other high-Beta positions (like OKTA and CYBR) did finish the week on a softer note.

And when you consider this is happening as gold and bonds surge, a case could be made for some short-term caution after the strong month we just had. So as always…

I’m focused with a plan for when to sell and will continue to pay attention to the broader market environment for signs of weakness. But until then, I’m willing to slowly keep increasing my long exposure.

New Trend Following Stock Trade Ideas:

So with the S&P-500 back at all-time highs, I’m keen to get to work looking for charts. And while many momentum names did fade during Friday’s trading session, the longer-term charts still like quite good.

In fact, if we do see more pullbacks this week, it could be a good opportunity to buy the dip. So to get prepared, here are some charts that are looking good to me…

The first idea I want to share is a recent buy of mine, Paysign Inc (PAYS), which has continued to show momentum the last couple of weeks. To be sure, this stock is a little bit volatile. But it’s one of the few lower-priced stocks that are trending higher.

With this trend continuing to gain move higher on large buy volume, I’m optimistic it can keep moving.

Now on the other hand if you’re looking for something a little bit less extended, then you might like CVR Energy (CVI). Because although this stock did finish higher this past week, it’s doing so after a month of consolidation: Depending on your preferences, you might decide to wait for more follow-through, or buy the pull-back with a tight stop.

Along the same lines, Icon PLC (ICLR) also deserves a mention. This one is only making a new 50-day high but, it looks like it could keep coasting.

Once again, I personally like these uptrends that aren’t too stretched. Plus, the 50-day high provides a faster entry signal so I can hopefully catch more of this trend.

Finally, I also wanted to point out Arena Pharmaceuticals (ARNA), as biotech and healthcare stocks just put up a strong week and the momentum could continue into the days ahead. I like the way this one has flagged the past 2 weeks

While biotech and pharmaceutical stocks can be a little risky at times, managing your risk with a position and stop loss (in this case below the recent swing low) can help to mitigate risk so you can cash in on the potential upside.

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.

And plus…

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.

Speaking of…

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.

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