Free Trend Following Trade Ideas for July 2017 (Part 2):
Congratulations on surviving the first full trading week of July! And to help you get ready for the second week, I’ve got a fresh batch of trend following breakout trade ideas.
Let’s quickly review last weeks’ action. Because even though it was a slow holiday-shortened week, there was definitely a lot of activity in the market!
Although to be honest, it’s not immediately clear that a lot got accomplished last week. So…
Let’s take a quick look at the price action underneath the surface.
Brief Broad Market Analysis For Last Week:
As you can see from the Google Finance graph below, markets edged lower, with the Nasdaq leading the way.
One other thing that jumps out from the chart above is the big price swings from day to day.
And without Friday’s strong performance, it could have been even worse!
So should we panic? Well, not so fast.
In the words of IvanHoff:
“Bull markets correct through rotations!“
That means it’s more likely that if one part of the market is selling off, that money is getting put to work somewhere else.
So where are the dollars flowing? Well, for starters, this one-week performance heat map gives a pretty good visualization:
And sure enough, you can see while there are certainly lots of red areas, there’s also some definite pockets of strength.
In particular, financials continued to act well. Industrial metals and good also stood out as bright spots.
But you can even go a step further…
To get a better sense of the magnitude of these most recent rotations, increase the look back period on the heat map.
In contrast to the 1-week performance above, here’s the 3-month performance.
Much greener, right?
It gives you good context that weakness in energy and retail is more persistent. While on the other hand…
The drawdowns in healthcare stocks the last few weeks may just be a pullback within a larger uptrend. See what I mean?
In my experience…
By looking at sector performance across different time frames like this, you can get a better feel for the price action today… and… how it fits into the big picture!
This view can also help prioritize and contextualize the weekly stock picks below.
Just one more thing before we get to that…
Great Trading Ideas You Can’t Miss:
Before we get to the weekly trade ideas, I just wanted to point out some great interviews that I read this week Seriously…
This is awesome advice from experienced investors with long track records of market success.
Check ’em out:
- Jon Boorman on Some Things I’ve Learned Over The Last 30 Years.
- 20 Year in, from an experienced asset allocator.
I’e found that by trying to stand on the shoulders of giants like this, I can speed up my stock market learning curve. And avoid some of the more expensive mistakes.
I hope you can too!
So if you guys like this kind of content let me know – maybe I could add it as a section for these weekend updates. After all, there’s no shortage of great ideas out there!
Now… let’s talk about what you REALLY came here to read…
New Trend Following Trade Ideas For July 2017 (Part 2):
A big part of trading breakout stocks is to always have a list of ideas ready. Because you never know when the market is going to break out.
This was especially true for me this week…
Due to a combination of new cash and being previously stopped-out of positions, I had some money to put to work this week.
To get us started with this week’s edition of breakout trading ideas, let me share my recent buys. I’ve actually been quite busy!
And the good news for you is…
My entries on most of these buys were pretty bad! So although this is NOT advice, if you were to piggyback on these trades you could could better entries than me.
I was pretty active though. So I’m going to try and speed through these trades for you.
Anyways… here it goes…
Recent Trend Following Breakout Buys for July 2017:
The first stock I bought this week was AGCO Corp. I like the company and was happy to see it pop up on my stock screen. Here’s what it looked like:
The next new position I started was in Bank of New York Mellon (BK). Financials are strong, and this one wasn’t too extended:
I’ve had good experience trading BK in the past as well. So I’m cautiously optimistic this trend will continue to unfold.
Now… in case you missed it…
The other week I posted a trade review and analysis of my recent Shopify trade.
And by the way… if you liked that… I also posted another recent trade review of my Cognex trend following trade.
These detailed posts help explain the thinking behind my trend following stock picks. Not only has the feedback been good, but I’m finding they’re a useful debrief exercise for me as well.
Anyways… as I was saying…
Since that Shopify trade treated me so well, I was eager to jump into shares of BZUN when I heard Howard Lindzon refer to it as the “Shopify of China” in their recent Momentum Monday trading video.
Here’s how I’m playing it after picking up shares earlier this week:
Finally, the last US stock I picked up on this busy trading week was Old Dominion Freight Line.
You can see this one has already moved quite a bit. But I’m encouraged by the way it’s made a new marginal high with this more recent breakout.
Another pocket of strength in the market has been the airlines. Maybe it’s the summer travel season and/or low oil prices? Whatever the reason, many of these stocks are taking off!
Here’s how I’m trading WestJet shares (WJA.TO):
By the way, I also own Jet Blue shares (JBLU) and think they – as well as many other airlines – are looking quite strong right now.
But West Jet wasn’t the only Canadian stock I bought this week.
Because I also dipped a toe into Canaccord Financial (CF.TO). As shown in the chart below, the stock has really been bouncing:
I might end up being late to the party on this one. But I think it’s still worth a shot.
Now in addition to these recent buys, there are some other ideas I’m keeping a close eye on that might be of interest.
Other Trend Following Breakout Trade Ideas:
As you can see this week, there really is no shortage of breakout stock picks to choose from.
So let’s keep rolling…
First thing, I want to point out that AOS shares are at an interesting spot, and I may look to add to my position
In case you aren’t familiar, AOS is a neat business that I’ve owned for some time now. The trend has been easy to ride in this one.
One stock I don’t know, but that has my eye is BEN.
There’s been a lot of coverage on the rise of passive index ETF investing, and to the detriment of established active managers like Franklin Resources.
But to me eye…
It looks like the worst might be over. BEN appears to be confirming a huge bottom-pattern and could be just getting started.
Take a look:
Of course, anything could happen and BEN could always collapse. But this is the kind of bet I’d be interested to take.
Another area of interest has been the railway stocks. I’ve been comfortably holed up in Canadian National Railway, which continues to perform well.
But CSX is another one that also looks pretty good. Shares are consolidating and might be worth a shot should they continue to breakout
Continuing on this somewhat industrial theme, Crane Industries (CR) is another stock that’s worth a look.
As shown above, shares of CR have been acting well and might be ready for their next leg higher after going sideways the last couple of months.
I currently own a few shares of CR but will consider adding if it can keep the momentum running.
I hope you’ve found these July 2017 trend following ideas to be of value. Before we wrap this up, I just want to remind you…
They are presented in an easy to read FinViz list so you can see all of the charts of these up-trending breakout stocks.
For full transparency: The only thing missing from that list are some of the Canadian stocks that don’t have US-listed equivalents (WEED.TO, DIR/UN.TO, CU.TO, WJA.TA, CFP.TO, CF.TO, MOGO.TO, PBH.TO)
Most of these are pretty small positions though as most of my funds are in USD at the moment.
Now… readers often ask me this… so:
In case you’re itching to learn the EXACT step-by-step process I use to find these kind of trade ideas…well… just keep reading!
Learn How to Quickly Scan and Trade 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 an 80-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!