Free Trend Following Trade Ideas For July 2019 (Part 3):
Chalk up another win for the bulls. It might feel like lazy summer trading right now, but the trend has continued to grind higher and higher! So I’m eager to show you some of my favourite charts and trade ideas for the week ahead.
Alright, to get us started today I want to set the stage with some index charts. After all, most stocks tend to move in a convoy with the Nasdaq and S&P-500.
So let’s start there, and then drill into some specific stocks showing signs of momentum!
July 2019 Stock Market Recap:
Bull Market Trending Strong:
One of the things I noticed when trailing my stops this weekend on my longer-term trend following positions was how many individual stock charts looked strong. So it’s no surprise to see this rolling up to an all-time high on the SPY weekly chart
As you can see, it really looks like we’re off to the races here. And while it’s always possible this is a short-term top, or even the top, I like the underlying breadth and am wagering the path of least resistance is higher.
Furthermore, this isn’t just an S&P-500 dynamic. Both the Dow Jones and Nasdaq 100 stocks are charging higher and managed to end the week on a strong note…
So for now, things looks pretty good. On the other hand, don’t get complacent because all of this could change next week…
Another Earnings Season Gets Underway!
The first of the big banks start reporting their quarterly results Monday morning. And it’ll be interesting to see how they set the tone for this reporting period. Seeking Alpha chimes in:
“Banks have been keeping expectations low, with the likes of Citi, JPMorgan, and Morgan Stanley warning of lower trading, investment-banking, and capital markets’ revenue.”
So I guess we’ll see if they can outperform these lowered expectations. But in any case…
Earnings season is often a time when old trends pause, break, or refresh for another leg higher. So be on watch for stocks that are about to report, and prepare accordingly.
Now how you manage this quarterly song and dance is up to you. But here are some tips on how I like to handle earnings.
In general, this is a good time to review your portfolio while also looking for new opportunities to find BIG trends supported by improving underlying operating results.
Speaking of big trends, let’s dive into some specific stock charts…
New Trend Following Trade Ideas For July 2019:
With the market once again at new highs, there are plenty of trend following trade ideas to focus on. In fact, the biggest challenge for me this weekend was avoiding stocks that were too stretched.
So first up, I want to review a couple of my current holdings that are setting up again. In my eye, these trends still look strong and I don’t see a need to reinvent the wheel.
For example, Altice USA (ATUS) looks like it might be ready for another leg higher. I’ve mentioned this stock before but with a couple months of consolidation seemingly out of the way, I expect it might be able to keep trending up now.
The other interesting thing about this chart is the way it’s not too stretched or extended. Instead, ATUS has just poked above the prior trading range (… all within the context of a potential year-long bottoming pattern!)
On the other hand, I also like the look of Lululemon (LULU), which closed the week on a high note as well:
It’ll be interesting to see if LULU can keep moving, especially if there’s volatility in the retail and apparel sector during earnings season (and isn’t there always?) For now though, I like the way things are shaping up here.
Okay, moving on to a couple new ideas…
I want to show you a financial stock: Fidelity National Financial (FNF). Here’s the weekly chart:
If the market likes the results of the big banks on Monday and Tuesday, then this one might be able to get in on the pin action too.
As always, please double-check earnings dates but I like the way this one has been grinding up.
Speaking of up, Walt Disney Co (DIS) also ended the week with some momentum. I know it’s a little bit volatile. But with their streaming service coming online it’s possible this one could keep running:
In any case, I think this trade is reasonably easy to manage. If it falls back into the trading range I’d be moving on but, if it keeps moving you can just trail your stop higher. Make sense?
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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