Free Trend Following Trade Ideas For Oct 2019 (Part 1):
It’s been an interesting start to October. Just like the temperature fluctuated up and down this week, so too did stock prices. The good news is, bulls managed to end things on a strong note.
So let’s start by looking at the big picture weekly charts of the indexes, and then zoom in on some individual trade ideas. Plus…
October 2019 Stock Market Update:
Maybe it’s a coincidence, but volatility picked up this week with the start of the fourth quarter. One way to see this is the wide range on the weekly candle on the SPY Chart below.
As you can see from this most recent candle, prices fluctuated quite a bit over the last 5 trading day…
I guess the good news is, despite the volatility bulls were able to push prices higher into Friday’s close. And while we’re still not exactly breaking out, the weekly chart avoided a lower low.
One thing to note: On the chart above I’ve added the automated trend lines from TrendSpider, to help illustrate the channels we might expect in the week ahead.
And it wasn’t just large caps that moved up! Emerging markets and small cap stocks also managed to close off their lows. So into next week, I’ll be watching to see if these parts of the market can follow through higher.
That said, I’d like to see leadership from large caps too. In particular, AAPL has been back near highs too while making a series of higher lows over the last few months. Can it keep rolling?
One of the other reasons I like this chart is because there seems to be a growth narrative attached to the price move, with wide reports of an increase in iPhone 11 production. Maybe this can keep coasting until the next earnings report!
In the meantime, bonds and gold also continued to hang in there, perhaps on worries of slowing ISM data. Talk about a mixed picture.
But as long as there’s top-down support from the broad market, I think it can be worth taking swings. So below are some charts that look interesting to me.
As always, do your own due diligence and manage risk with position sizing and a plan for when to sell.
Trend Following Trade Ideas For Oct 2019 (Part 1):
Okay, first up I actually want to review a few of my current holdings. These are stocks in long-term uptrends that are flashing fresh entry signals. After all, trends can keep going for much longer than you might think.
One example I like right now is Ansys Inc (ANSS). The chart has been grinding higher the last few weeks and it isn’t showing any signs of slowing down.
To be fair, it’s not the fastest mover. But slow and steady sometimes wins the race.
A related idea is one I’ve mentioned a few times here. But it just keeps chugging along too (and the dividend doesn’t hurt, either!)
I’m talking about Americold Reality Trust (COLD).
To be honest, I think this is one of the best looking trends out there right now. But I appreciate it can be hard to buy a stock that’s already gone up so much.
In that case…
You might consider looking for stocks that have pulled back, stabilized for a few weeks, and may be ready to turn higher. Check out WorkDay (WDAY) for an example of what I mean by this:
Even though I usually like to buy new 52-week highs, these younger breakouts can present good risk/reward opportunities.
Alternatively, I also like to look for breakouts that are on the cusp of turning higher. On any more follow-through next week, I think Global Liberty Inc (GLIBA) looks pretty good:
Alright, if these stock charts aren’t enough I also want to share a few of my favourite trading articles from the last week…
Best Reads From Around The Financial Web:
- “Lately, I have been scanning for the biggest and largest Chinese companies listed in the US and adding some to my short book. And I will short them through puts with a long expiration date.” Mixing Politics With Markets
- “Based on price action, the S&P 500 and Dow Jones Industrial Average are still in an uptrend. There are still some high probability things that have occurred that point to higher prices over the next several months, despite the recent selloff.” S&P-500 Still in Bull Market Despite Recent Sell Off
- “Address the problem, attack the problem, and then adapt to whatever comes next. Don’t waste a minute worrying about what might have been or what might go wrong in the future.” Don’t Let Them Beat You Twice
- “The difference for those who generate wealth from trading is that they deploy a simple, effective process on a consistent basis, while hit and miss “big baller” traders make a lot on a trade, then lose more on the next trade.” The Secret To Creating Your Own Simple Trading Cash Machine
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.
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.