Free Trend Following Trade Ideas For November 2017 (Part 3):
Happy almost Thanksgiving! As you’d expect, US Markets will have a holiday shortened week coming up. And volume is likely to be light too.
Nonetheless, there are still lots of trade ideas to explore and I’m excited to share potential stock picks with you. Sound good?
Now just before I show you this week’s trade ideas, there are a couple interesting links I want to share.
The goal is to provide you with some quick (but important!) perspective on the current bull market.
Interesting Economic & Market Links – November 2017:
With 2017 almost in the books, and given the strong stock market performance year-to-date, it’s only natural to reflect a little bit. Because…
Even if you believe the current bull market will continue… (as I do), it can be helpful to see arguments for the contrary.
This week Ryan Detrick had a good article on reasons to be worried about stocks. And frankly, I agree with all of them!
But so long as stock prices keep trending higher, I’m happy to participate. The key of course, is always have a plan for when to sell.
To counterbalance the link above, take a look at Eddy Elfenbein’s note on recent economic report. Despite all the doom and gloom in the media, the economy seems to be doing well.
Of course, another theme that’s popped up this week is the flattening yield curve. I think this is definitely a concern for financial stocks.
But with what feels like so many eyes on this indicator I’m skeptical it portends an imminent crash.
Jerry “The Turtle Trader” Parker posted a fascinating article full of academic research about why trend following strategies work. I really do encourage you to read the whole thing, but check out this section:
Impressive, isn’t it? I especially want to emphasize the risk-adjusted nature of this outperformance, because it’s been my experience too (even though this is referring to multi-asset class trend following).
But by nature, not only does trend following let you participate on the upside, these strategies also keep you on the sidelines during the most vicious declines (thus reducing your drawdown).
“Talk about the best of both worlds!”
So I definitely encourage you to check out those articles. And if you do like this section of the weekly updates, let me know! Because it’s not something I’ve typically done but I think it could help set the stage for potential stock picks.
Let’s get back to the important matter at hand: stock trade ideas for the week ahead!
Free Breakout Trade Ideas For November 2017 (Part 3):
To be honest with you, one of the hardest parts of writing these weekly trade updates is not repeating myself. Because as long as the bull market continues to trend, my portfolio will remain in many familiar names.
And I know…
Many of you have asked if it’s too late to buy. The truth is, it’s impossible to say. Nobody can predict the stock market and be certain when it will hit a top and reverse. So what’s a trader to do?
Well, I think as long as you manage risk with smaller position sizes and a clear plan for when to sell these extended ideas can be worth a small investment.
Another tip is to focus on stocks coming out of a sideways consolidation, rather than those going parabolic. As an example, I’d be much more comfortable adding to APH right now than SQ or PYPL (though I’m not selling them either!)
Can you see how this one looks like it might be setting up for the next leg higher of an uptrend? This approach isn’t perfect, but tends to be a little less risky. And in any case, these stocks can often go up for MUCH longer than you might expect.
That’s also why…
I really encourage you to check out my own trend following portfolio at the bottom of these posts. If you go back a few weeks, you’ll see many of the stocks are the same as I’m currently holding. Because…
In the words of Jesse Livermore: The big money’s in the sitting!
So let me show you some tickers that I might be worth sitting on going forward!
New Potential Breakout Stock Picks For Nov 2017:
The first chart for you today is one that I shared back in August, it’s Credicorp Ltd. (BAP). Unfortunately at the time the stock failed to get going.
But I think it’s perking out again. So I wanted to keep it on your radar:
Full disclosure: I already own some BAP, but am basically breakeven on the position. I’m watching closely now and may add more if this one can get going next week.
The second chart I want to show you is an idea I found from Dennis on StockTwits. He pointed out some compelling fundamental growth drivers for the company
This one just goes to show, if you keep your eyes and ears open, there are breakout stock ideas everywhere. Even though I find most of my trade ideas through FinViz stock screens, some ideas just come to you through the course of life!
Okay, moving on…
Another chart I want to show you today is one of Intuit (INTU). I always find it hard to resist a company with share prices at all-time highs:
Plus, INTU is somewhat of a unique business in the software they provide, giving them potential pricing power and sticky customer relationships. In my experience, these are characteristics of a business that can trend.
On Friday I got stopped out of my trade in EA for a 21% win. So with the new cash, I think I’m going to put it to work in Winnebego (WGO).
The company has a strong fundamental operating history, and I’ve been watching it trend higher alongside it’s peer, Thor Industries.
Plus, once you read about CamperForce you’ll discover a massive RV market you probably didn’t know existed.
So, those are some of the new stock picks I’m going to have my eye on next week…BUT… I also want to share my existing trading positions with you.
So here they are in a FinViz watch list! Take a look if you’re still itching for more potential trade ideasi.
They might be of interest, because everything is laid out in charts so you can easily see what’s what.
I hope this helps give you more context on how I’m seeing the current market, and where I’m allocating capital.
While I’ve obviously shown you some of my favourite picks for the week ahead, I can also teach you how to fish for your own trading ideas!
Just keep reading.
Learn How to Scan For 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 a +90-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!