Trend Following Stock Picks for April 2017 (Part 4):
Well, it looks like my cautiousness last week was uncalled for!
The stock market… (particularly the Nasdaq)… was a great place for bulls!
One of my favourite trend following traders, @ZenTrends, said it best Friday afternoon:
And just in case you were asleep at the wheel…
The Google Finance screenshot below gives you the context you need by showing how the major market averages performed over the last 5 days.
Note the especially strong performance in the Nasdaq (yellow line):
Not bad for a week’s work, right?
And going into next week… as you’ll see below… I think there are a LOT of attractive setups for breakout stock picks. It’s good news all around.
If you have cash on the sidelines, get ready! Because there are lots of new 52-week highs to choose from.
Now let me show you some of my favourites.
Trend Following Trade Picks for April 2017 (Part 4):
… So check ’em out if you haven’t already!
The great thing about trading these long-term weekly breakout charts is that when you do find a winner, you can ride it for WEEKS or even months on end.
Not only does that let you capture BIG moves.
It keeps commission costs low and lets you get on with your life while your profits pile up!
Moving on to this week’s stock picks, let’s get started with IAC. This unique media business has been breaking out month-after-month.
Take a look at the chart for yourself:
In fact I actually picked up a few shares at Friday’s close to start a position in IAC.
I’d added some new money to my brokerage account and the chart looked so good, I couldn’t resist.
Of course, things could always go south. But that’s why I have a plan to sell!
I want to show you MELI. This Argentinian e-commerce stock has been grinding higher in a steady uptrend. And this week it peaked it pushed to a new all-time high.
This might not be the fastest mover, but it’s an easy trade to manage with the potential to keep running.
Now another stock chart worth sharing is WMT.
This brick-and-mortar retail behemoth has broken out well above it’s prior high, and looks like it might be ready to start trending higher.
While it might be a little extended in the short-term, you could leg in to this position in tranches, (especially if given the opportunity on a pullback).
… Nonetheless, don’t count Walmart out!
And if you’re not feeling WMT, you could also check out BBY.
I know, I know…
In an Amazon world it’s hard to imagine Best Buy still surviving, let alone thriving. But the stock chart is looking good (you’ll just have to go look for yourself).
Also on my radar right now is, SBUX. I don’t know if it’s the Unicorn Frappucino mania, or something else…
But regardless of cause, shares of SBUX have exploded higher after a year of sideways consolidation.
Looks pretty good to me…
If this ubiquitous coffee chain is about to get running again, I’d love to have a seat at the table. So…
I’ll be continuing to watch this great company carefully in the weeks to come, and may look to allocate new cash here.
Another stock that looks like it could be breaking out is UTX.
This conglomerate has been consolidating for awhile, but finally made a decisive move this week.
I think it’s possible UTX could be in the midst of resuming it’s uptrend higher, so jumping along for the ride might make sense.
You know… just… buy what others are buying!
Last on this list of new ideas to share with you is SYK. Stryker is a high-quality company that’s been consolidating.
As you can see:
The chart above shows how dip buyers have stepped in (with authority!) right where you expect them to. It was also enough to push shares of SYK to a new 52-week high. Not bad, right?
Although these new stock trading ideas present plenty of potential profit opportunity, I also want to highlight some older ideas that are setting up again.
Hear me out…
BECAUSE a lot of these are my existing positions… and to be honest… I think they still look great!
… (athough mayyyyy-be I’m biased).
Anyways here they are:
Older Stock Picks Worth Revisiting:
As I mentioned earlier, a few of the stock picks from earlier in the month (and beyond) are really looking good.
In fact, if I wasn’t fully invested already, these would be some of the stocks I’d want to consider adding to. Almost all of them I already own.
For example ROL, which I wrote about in February, has recently broken out from a multi-month consolidation.
And to my eye, it could be ready to start the next leg higher:
Another idea from February that’s perking back up is MASI, which I featured here.
I tweeted MASI had worked off some of it’s overbought conditions and looks ready to get going again too:
Pretty good, right?
I like this set-up because there’s a recent low to trade against and potentially plenty of momentum players waiting in the wings.
Another idea I’d be remiss not to mention again is PLAY, which I wrote about in March. It took a little longer than I’d hoped, but now it’s starting to get moving in the right direction.
And actually, this is chart is looking very similar to EA, which I also wrote about in that article. Both stocks are charging into blue sky territory. My favourite!
The last stock on the list I have to mention is SHOP.TO (and the NYSE-listed SHOP), both of which have been on absolute tear.
And by the way…
“They’re also a great example of why I don’t use profit targets!”
I’m currently up over 100% in this position, and I’ve trailed my stop-loss to lock in significant profits.
I don’t say this to brag, honestly. After all, I have plenty of losing stock trades.
But this goes to show…
One big winning breakout stock can have a huge influence on your results. And if you hold on for the ride, that kind of trade pays for a LOT of small losing trades.
Know what I mean?
So even though some of these picks feel extended… as long as you manage risk, you can still hop on the trend…
Because you never know when it’s going to end!
Don’t believe me?
… well… think of it this way:
AMZN has gone up OVER 50,000% since going public!
I’m not making this up:
Now sure, there have been big drawdowns along the way, but also some pretty consistent runs you could have captured. So…
What’s my point?
As Jesse Livermore said, “the big money is in the sitting!“
If you want big profits, you have to (1) have a system to capture them, and (2) be willing to wait for them. So…
In the case of the above picks, like SHOP… even though I have a big gain… it doesn’t mean the trend is over!
There are many times where I’ve added to positions… even after I have a 50% profit.
As long as you know when to get out, it’s nothing to be afraid of. Make sense?
Okay, if you’re still hungry for ideas, some other former stock picks that are worth looking at include: CR, BABA, DIS, ANET, MA, LRCX, CNR.TO, MTN, and WCN.TO.
And finally… (if after all this you still want to read more of me)… check out the two new blog posts I put up this week.
They were both in response to reader questions:
- The first is about how to track your stock trades in Google Spreadsheets (including a free template).
- The second shares how to find the best breakout stock picks on StockCharts.com (including free video).
Now while these articles are definitely helpful, and packed with actionable advice… you should know… they aren’t the complete solution!
So how can you get the full picture?
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… 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.
Can This Blueprint Improve Your Trading?
Learn how I find and trade breakout stock picks… in only 20-30 minutes each day!