Trend Following Trade Ideas for May 2017 (Part 5):

Can you believe that May’s almost already over? This year has been flying by! I guess maybe it’s because the global stock bull market has been so strong.

After all, time flies when you’re having fun!

So on that note…

Let me show you some of the stock picks I’m looking at today, as we close out the 5th month of 2017. And as usual…

I’ll also share my current holdings, many of which are continuing to press higher!

And by the way…

Don’t forget my prior recent stock picks! There are tons of great ideas that continue to hit high-after-high. And are still worth adding to in this current bull market.

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I don’t want to bore you by repeating the same picks each week. But let’s just quickly recap some of the earlier winners to wrap up this month. They’re worth your time!

So…

Here are just a few of the trend following trade ideas that are looking good to me:

  • May 2017 Part 1 – HEI and FB have both continued moving up to new highs.
  • May 2017 Part 2 – ROL, RYAAY and FOXF have all been acting strong.
  • May 2017 Part 3 –  BR, AVGO and SQ (in particular!) have pushed to all-time highs.
  • May 2017 Part 4 – SBUX and JKHY are already off to a strong start!

And to be honest, this is the kind of price action I expect!

Now…

I don’t mean to brag. It’s just the broad market has been quite accommodating to breakout stock trading. How do I know?

Just look at this graph from Google Finance showing month-to-date performance of the major indices:

May Monthly Trend Following Index Performance

As you can see, with all of these indexes firmly in the green, it’s time to make hay while the sun is shining.

Tech in particular has been especially ripe with breakouts and strong breadth.

And don’t miss the weekly chart of the SPY ETF either. This bigger picture view provides good context.

Take a look for yourself:

trend following stock market performance May 2017 part 5 SPY

And let me tell you…

“If that’s not a broad market breakout… well… I don’t know what is!”

Of course anything can happen in the stock market. But with an uptrend like this the odds are in our favour that things can continue trending higher.

I know it can be tough to buy stocks at record highs.

But what goes up… can… keep going up!

So let’s get down to this week’s trade ideas!

Trend Following Trade Ideas for May 2017 (Part 5):

As you probably know, trend following is all about going with the momentum. And in today’s market, there’s lots of it.

If anything…

The hardest part about compiling these stock picks for you today is that there were almost TOO MANY to choose from!

Oh well, I guess it’s a good problem to have!

But keep in mind…

A lot of these stocks are closing their week at or near all-time highs. My preference is to buy the open. But…

You could also place a limit order slightly above the current price, which would only get filled if the momentum continues in your favour. 

In any case, manage risk with hard stops and careful position sizing.

So the first chart I want to show you is ATR.

trend following trade ideas may 2017 part 5 ATR

You can see the shares have moved higher after a couple weeks going sideways. The surges of buy volume in recent weeks give me a little more confidence too. I don’t own ATR yet but am considering pulling the trigger.

Moving on…

I’ve also been impressed with the slow and steady uptrend in shares of CBOE. As I’ve written before, I like this unique business.

And I like the price action on the chart too:

trend following trade ideas may 2017 part 5 CBOE

Personally, I don’t trade a lot of options. But I’m happy to try and profit from those who do!

Another stock in a firm uptrend that I’m considering adding to is Comcast. Shares of CMCSA are acting strong, as you can see:

trend following trade ideas may 2017 part 5 CMCSA

I’m encouraged by the new weekly closing high, and don’t mind buying here as long as you have a plan for when to sell.

But if you’re worried CMCSA is too extended, you might want to check out FIZZ instead.

Here’s a chart:

trend following trade ideas may 2017 part 5 FIZZ

There’s no doubt FIZZ has the ability to run higher. This small-float former momentum winner has been going sideways for two months.

But with this week’s breakout, it looks like FIZZ could be setting up for the next leg higher.

Next up…

I want to shift focus to some large-cap tech names. Because to be honest, there’s been a lot of strength here.

And to my eye, it appears these names are leading the market higher.

Google is a prime example:

trend following trade ideas may 2017 part 5 GOOGL

When these mega-cap stocks get rolling… with big institutional momentum behind them… the trend can easily last for months on end.

Don’t believe me? Just look at AAPL’s year-to-date performance!

These flows can last. And riding them can be fun and profitable. So…

The last related idea I want to share with you is boring old Microsoft. Here’s what I’m seeing:

trend following trade ideas may 2017 part 5 MSFT

Not bad, right? Shares of MSFT have been on a serious bull run ever since Steve Balmer left as CEO. And right now, these shares don’t show any signs of slowing down.

So there you are! While none of these stock pick ideas are guaranteed by any means, I’m willing to place bets when the trend is up.

On that note, here’s a list of my current open trend following positions. They’re in alphabetical order with charts. The only thing missing are a few small positions in Canadians stocks (Emera, Premium Brands, Waste Connections, Brookfield Asset Management).

It’s worth noting…

All my current trading positions are actually the same as last week… since… my style of trading doesn’t require too much time or activity when things are going well. And…

As Jon Boorman noted in his recent weekend update, breadth is strong and supportive of breakouts at the moment. So as trend followers, that’s when it can pay to act.

By the way… speaking of action…

I should mention…

If you want to learn how to find stock picks like this for yourself, well, just keep reading!

Because…

Although I’m always happy to keep sharing my weekly stock trade ideas with you… at some point… you probably want to learn to pounce on some of these opportunities for yourself! Don’t you?

That’s what I thought. So here’s what you can do next…

Learn How to Scan For Breakout Stock Picks:

If you want to learn exactly 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 +80-page PDF… packed with everything I do to find, buy and trade breakout stock picks each week (just like the ones above). So…

If you want to see how to find high-potential-momentum stock picks for yourself, learn how to let your winners run and be confident about locking in profits, then this blueprint is for you.

And by the way…

The reason I think you’ll like this e-book is because of how much time and energy it can save you.

I mean, yes… the whole purpose is to find winning stock picks… But because I’ve condensed everything I’ve learned over the last 10 years into 80 pages of focused content, you get maximum value with minimum effort.

So do your future self a favour and get your hands on this Breakout Blueprint today!

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