Trend Following Trade Ideas For Oct 2017 (Part 1):
And just like that, another month (and quarter!) have come to a close. Year to date, 2017 has been nothing short of great for stock market bulls. So that’s why I’m excited to share even more ideas with you as the last three months of the year unfold.
Okay, now just before we dive into stock picks for the week ahead, I want to set the stage a little. So…
Let’s quickly recap the price action from the lat week, month and quarter to help prepare us for what’s next.
September & Third Quarter 2017 Market Recap:
2017 has been a great year for stock bulls and the third quarter was no exception. The Dow, Nasdaq and S&P-500 all added to their double-digit performance over the last 3 months.
But although those gains look good on paper, there was definitely some volatility along the way. And this most recent week was no exception:
As you can see, stocks came in soft Monday morning, but strengthened throughout the week.
Gains were broad-based, but for a little profit taking and consolidation in healthcare and industrials.
The utilities sector was actually the worst performer, while gold and treasuries also took a hit. So to my eye, it looks like bulls remain fully in control.
In other words: Risk on.
And if you’re still not convinced, check out the IWM Russell-2000 small cap ETF.
Honestly, I thought this chart was already too extended last week. But it just goes to show you that momentum can run longer than you think, and anything can happen in the market (… for better AND worse!)
This is also a good example of why I don’t use profit targets.
Anyways, with this backdrop in mind let’s take a look at what trading opportunities the market is providing for us in the week ahead.
Trend Following Trade Ideas for October 2017 (Part 1):
As the bull market marches on, so do the investment and trading opportunities! In fact, many of our trade picks from last week have performed fantastically the lat 5 days. So that’s another reason I’m excited look ahead and see what we can find.
Because that’s where I’m sharing charts… every single day!
Now although I didn’t do much trading last week (due to being fully invested), there are lots of ideas on my radar. So let’s take a look.
The first potential trade opportunity is Dollar General (DG). After many months of consolidation, DG is back at the highs.
To me, this is a pretty convincing move after a lot of sideways action. And while the head fake is always a possibility, I think odds are good DG keeps trending up.
Another stock that looks to be trending in the right direction is Caesar’s Acquisition Co (CACQ).
Even though I don’t love the fundamentals on this one, the chart has my eye. And it’s moving well without being overly extended. So I thought it was worth a mention:
Similarly, the chart of Teradyne (TER) also caught my eye. I like the way it’s pushing new highs, after doing a little back and forth recently:
As a bull, it’s always encouraging to see stocks overtake their prior levels of resistance. And TER is a good example of that after it previously stalled out around the $36 level.
So hopefully it can keep running higher into blue sky territory.
If you’re looking for something a little more explosive, you might be interested in this chart of Grand Canyon Education ((LOPE).
Although shares of LOPE have already made a huge move, I think it could keep trending. In addition to the strong weekly close, the stock had been consolidating for almost 6 months now.
In my experience at least… these longer consolidations can be GREAT fuel for future uptrends.
Of course, nothing’s guaranteed. So it always pays to have a plan for when to sell.
If you just want to find a great uptrend to jump on, then I’d be remiss not to share the chart of Cadence Design Systems (CDNS)
For me personally, I can buy charts like this all day long. And to be honest, I’m surprised I don’t already own CDNS!
I find these stocks that march slowly higher over time to be easy to trade, and rewarding to own. CBOE and APH are two other examples from my portfolio that come to mind.
But speaking of stocks I currently own…
See My Trend Following Portfolio of Breakout Stocks:
If you’re STILL dying to see even more new stock ideas, you’ll be happy to know I’ve put all my positions into a FinViz watch list so you can easily see the charts of all these holdings.
Hopefully that gives you a better eye into my stock picking approach… AND, what the results can look like over time. It doesn’t include my Canadian stocks (FinViz doesn’t support it) but the vast majority of my portfolio is on there.
The neat thing with these kind of trend following trade ideas is that you don’t necessarily need to be quick to buy them.
As you can see from the portfolio link above, many of these stocks have been trending higher for MONTHS (or even quarters) on end! This is the kind of stuff big winners are made of!
If you want to go a step further and learn how I actually find and trade these kinds of stocks… well… let me show you!
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 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!