Free Trend Following Trade Ideas For September 2019 (Part 2):
After a cold end to summer in the stock market, prices finally started to heat up in September. And now, with the first full trading week of the month ahead of us, I’m keen to take a closer look at whether this momentum can continue.
Alright, to get started this week let’s take a look at the big picture of price action on the market indexes. And then that’ll set the stage for some individual stock charts that are acting right.
But first things first…
September 2019 Stock Market Recap:
As I was saying, August wasn’t exactly kind to stock prices. The major market averages slumped throughout most of the month. Even stocks that had posted strong price earnings hadn’t been able to follow through. But finally, things have started to change.
For starters, the S&P-500 and Nasdaq 100 indexes managed to close the week above their 50-day moving averages for the first time in a couple weeks. Here’s the daily chart of the QQQ ETF go to give you an idea:
As you can clearly see, price managed to gap and hold above the August resistance level, which could set the stage for a reversion higher.
And just to really drive the point home, the SPY weekly chart ETF paints a similar picture with popular large-caps starting to run back towards all-time highs.
Now looking ahead, the question becomes whether this short-term momentum can turn into something more serious.
After all, it sometimes seems like the fate of the market might hang on the balance of the next Presidential tweet!
And actually, with trade wars being one of the main market narratives, I’m also keeping an eye on emerging markets for clues. Some follow through on the weekly chart below – (eventually a higher-high) – would be a nice indicator for broader participation…
Meanwhile, bonds and gold took a pause last week, too. So more consolidation here may also coincide with a risk-on attitude. After all, there are more stocks starting to trend higher near 52-week highs.
So let me show you a few that have my eye…
Trend Following Trade Ideas For September 2019 (Part 2):
With the market breaking out of the recent trading ranges, I’m finally starting to see a few more stocks trending. You’ll also notice I’m using a new chart provider – TrendSpider.com for the images below. I’ve been trying it out the last few weeks and enjoying the tools they offer so far.
Now without further ado, let’s get to some charts.
One stock showing notable relative strength is Twitter (TWTR). The weekly chart has been looking constructive so far this year, punctuated by a strong close this week:
With the major large-cap indexes gaining steam, I’m hoping TWTR can benefit from the top-down momentum we’re starting to see.
Another chart that’s looking strong within striking distance of 52-week highs is PulteGroup Inc (PHM). Now with interest rates getting cut again recently, perhaps it’s no surprise a homebuilder stock is acting well.
Whatever the reason, PHM finished the week on a high note and this object in motion could stay in motion. After all, the stock has gone sideways for a few weeks and is just now poking it’s head up.
Along the same lines, Thomson Reuters (TRI) is also near highs after consolidating a little bit. Of course, the stock still has momentum longer-term, as you can see by the impressive year-to-date performance…
Now one more setup like this, just with a lower-priced tag, is Medical Properties REIT (MPW)…
In fact, I actually liked this idea so much I picked up some shares earlier this week. With rates showing no signs of getting off the ground anytime soon, these income-focused yields might just keep attracting more buyers.
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.
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