Free Trend Following Trade Ideas For March 2019 (Part 1):
Welcome to another new month in the market. It’s hard to imagine March will be able to keep up the pace we’ve seen so far in 2019, but that doesn’t mean we should stop looking for trade ideas. So I’m excited to show you some of my favourite charts right now, in this week’s market update.
Now to be honest with you, I’m pretty amazed at how well markets have done so far this year. That’s why I want to quickly recap some of the action just so you can get a sense for the current bullish environment. Because it’s been a very impressive winning streak to start 2019.
The question of course, is whether it can continue.
March 2019 Stock Market Update:
The last week of February started on a quiet note, with markets treading water in a sideways consolidation. But things did end with bulls in control, following Friday afternoon’s rally to start the month of March.
So once again, we have another incrementally higher weekly close with dip-buyers stepping in. The weekly chart of the S&P-500 illustrates this current situation pretty well:
Coming into a new week and a new month, I’m very curious to observe if the index can just keep grinding higher, or whether we finally see some resistance and a bit of a pullback at this 2,800 level. Now zooming in a little bit…
The daily chart of $SPX provides a bit more insight. And despite the bounce, I think bulls still have the edge here…
In particular, I’m impressed by the orderly trading range this week. Instead of a rapid pullback or selling across the board, there were some positive signs of sector rotation, which resulted in a relatively calm week that even ended on a strong note.
And in addition to US stocks, emerging markets and European stocks are still looking pretty good too. So until we see some more sustained signs of weakness I’m inclined to continue giving bulls the benefit of the doubt, especially now that the headline US market indexes are above most major moving averages.
Now one potential commodity to keep an eye on this week is the price of oil. After all, the unwind of oil in October coincided with a correction in stocks too. And just like stocks, oil has rallied off its lows in a rather meaningful way this year.
But I’m going to be watching the WTIC daily chart as it did finish Friday on a soft note. So any sustained follow-through lower could be a potential headwind.
As a trend follower though, until we see some more serious signs of weakness I’ve got to keep looking for ideas on the long side. Let me show you a few of my favourites…
March 2019 Trend Following Trade Ideas (Part 1):
To start us off today, I want to show you a few recent IPOs that have been rallying back from hardship. And then I’ll share a couple of the more established uptrends that look like they could be starting new legs higher.
So first up, check out Stitchfix (SFIX) below. You can see that after getting hammered hard for a couple quarters, the stock is peaking back to multi-month highs…
If SFIX can keep moving higher this week I’d expect the momentum might stick. It’s a unique business that might be finally finding its groove after a rocky post-IPO start.
Along a similar theme, take a look at Bandwidth Inc (BAND). It’s got the same look and feel, but is pushing to all-time highs…
This stock is also in the cloud services space, which is one of the stronger industries right now. So I’m hoping the top-down strength could keep this stock moving.
Now the next stock I want to show you is a current holding of mine, Planet Fitness (PLNT). The chart is sporting a long-term uptrend, and has recently started to pop after strong earnings.
Considering the long consolidation we’ve seen recently, I think this weekly closing high is a compelling breakout signal, and it could keep trending.
Same story goes for Live Nation (LYV), which reported record operating results at the end of the week, and looks like it might still have some long-term momentum left in its sails.
I know it can be tough to buy stocks that are breaking out like this and look like they’ve already moved a lot. But if you’re hunting for big moves, in my experience these kind of all-time highs (especially when supported by fundamental results), can lead to more all-time highs ahead. You just need to be careful to manage risk along the way.
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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