Trend Following Trade Ideas for April 2017 (Part 1):
It’s that time of the week: New free trend following trading ideas! And with the first quarter of 2017 coming to a close, I’ve got lots of potential stock picks to share with you. Yup…
You’re not going to want to miss this!
But before we get into the new stock picks, I just want to share a quick thank you to everyone who took advantage of the Breakout Stock Blueprint pre-sale. I’m excited to already have such a great community coming together. I can’t wait to release the final product when it’s ready in a few weeks.
Now… as for the stock market…
The trend remains up! Despite the slight uptick in volatility last week, the NASDAQ index made an all-time weekly closing high. Just take a look:
Of course, the S&P-500, Dow Jones and Russell 2000 small-cap index are a little further from blue sky territory.
But overall price action remains constructive. And…
With 52-week highs outnumbering 52-week lows, you can see the NYSE Advance-Decline line is also moving higher. Check it out for yourself:
This kind of bullish backdrop is exactly what we like to see. And although not every sector of the market will be firing at full speed, there are still lots of potential trading ideas to pick from.
So what’s the best way to profit from these long-term ongoing stock market breakouts?
Trend Following Trading Strategies for April:
A lot of newer traders are nervous about buying stocks at new highs. But as you’ll see in the charts below, stocks that are in uptrends often continue to trend higher.
My longer-term trend following approach allows me to ride stocks for weeks (and sometimes even months) at a time… SO… you don’t need high-frequency trading speed to capitalize on this market strategy.
While I didn’t know it at the time, TTC has continued to push higher.
In fact, just this week TTC hit another new all-time high (without even including dividends).
In my experience…
Not only is this bigger-picture approach easier to follow-along with… but… you also don’t strain your eyes staring a screen all day, or churn your account with too much commissions.
Plus, regular readers have the benefit of seeing some of these huge breakout stock trends develop in real time.
It’s the perfect combination of actionable and educational!
It’s why I spend hours each week looking for stock picks that make good trend following candidates. And I’m always excited to share them with you, 100% free.
So let’s get down to business.
What follows are a mix of completely new ideas, and prior stock picks that are still looking strong.
Trend Following Stock Pick Ideas for April 2017:
The first trend following breakout stock I want to share with you is $CGNX. This one has been on my radar (and in my portfolio!) for awhile. Plus…
I made the bold move of adding to my CGNX position after it was already showing a 50% profit. Actually, I even tweeted at the time that I might be late to the party.
— Trend Following Jay (@SmartStockTrend) March 7, 2017
Luckily though… since then… shares of CGNX have pushed up to new highs. Compare the chart in the tweet above with the updated view below:
It just goes to show you that even when a stock is up by a lot, it can keep breaking higher. It’s sometimes hard to believe this, until you experience it.
Currently, I’m still bullish on CGNX and have trailed my stop-loss to just below $77, to reduce risk. Of course it could reverse lower but I think the odds of higher prices are currently favourable based on the strong closing weekly candle.
Another recent favourite of mine that continues to act well is BEAT. Although price has been volatile, to my eye it looks like shares of BEAT have cemented their uptrend by decisively pushing higher.
See for yourself
While BEAT has been moving in fits and starts lately, I’m happy to hold onto my shares and if I hadn’t already added to my position in February I’d be strongly considering buying more, with a stop-loss indicated as above.
CNI continues to show it’s the little-engine-that-could. This railroad stock has grinder higher in a slow and steady fashion. Here’s the weekly chart:
For me, even though this stock isn’t the fastest mover, it’s been a great trade so far. I’ve been able to trail my stop higher little-by-little each week, making this a very low-stress stock pick.
With this new all-time weekly closing high, I remain bullish on MTN and have trailed-up my stop-loss so that even the stock reverses I should be able to lock in a 10% profit.
One more idea that I want to share is LMAT. This uptrend is a little bit more questionable, but it’s a fast moving stock that could be worth having on your watch list. See for yourself:
If LMAT can continue higher next week, I’d be willing to bet it can make another leg higher, though I’d be a seller on a daily close below $21.50
Now before wrapping this up… I want to quickly review some other trading ideas from the great white North…
Canadian Trend Following Trade Ideas for April:
Now, I usually don’t feature too many Canadian stock picks, because most of my readership is focused on US stocks. But…
The TSX index made a pretty strong reversal this week. And there are some interesting moves happening under the surface that I can’t help but mention.
One stock that continues to outperform beyond belief is PBH.TO. Premium Brands has put up impressive performance lately.
I’ll be watching this one closely and if I didn’t have exposure already I’d be adding a small position. However, I’m very curious to see how it consolidates these recent gains. This patience may allow for a better entry from a risk vs. reward perspective.
For example, another Canadian stock I’m watching is Toromont Industries. As you can see in the chart below, TIH.TO has consolidated recent gains and now looks to be making another push higher.
This kind of continuation breakout is always great to see, and can present a great entry signal. I also like when you’re able to place an ATR-stop loss below a recent low. This can be a great plan for when to sell your stocks.
Finally, I also want to point out the trend in WCN.TO. This is another great example of a continuation breakout in a strong uptrend. Here’s the weekly chart:
As you can see, WCN is trying to breakout after a month-long consolidation. Personally, I think these trades present great opportunities to invest with the wind at your back.
That’s not all though… there’s one last area of US market strength I want to tell you about…
Large Cap Technology Trend Following Stock Pick Ideas for April:
It shouldn’t come as a surprise. But there are some large cap technology names that continue to perform quite well and are always worth mentioning. In particular, MSFT, FB, AMZN and AAPL all look quite strong, breaking out out to new highs once again.
Out of the three, my favourite right now is AMZN. Look at this strong bullish breakout from a long sideways consolidation:
But although AMZN is my favourite… as long as these large-cap tech names continue to lead… I think bears will have a hard time keeping US stocks down. In fact, these relative blue chips might be a beneficiary should we continue to see capital rotation away from financials and conglomerates.
I hope these trend following stock picks are helpful in getting you prepared for the trading week ahead! As you can see, there are lots of breakouts waiting for you to pounce on.
Learn 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… you’re welcome to join the wait-list… which means you’ll be the first to know when I reveal my exact entry and exit system for picking breakout stocks.
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.