On Sunday I [intlink id=”1101″ type=”post”]picked three S&P 500 stocks[/intlink] for the current week and I am delighted that all 3 stocks performed as predicted if not better! SPLS and NYT stocks all gained about $1 per share while SNDK stock proved to be an excellent stock pick, winning $5 per share! All stocks are now trading at important levels of resistance and given the fact that I predicted the price movement within a week, I would advise against holding the stocks any more. Our target was to profit by swing trading inside the established uptrend and we have done so with great success. If you are forecasting that the trend will continue, you could trade out half of the shares to secure a profit, in case the stocks indeed break above the resistance levels.
The first stock pick, SPLS, has gained $1 per share during this week with a maximum loss of 20c per share on Tuesday when the stock price retraced to $21.24. The following month might also be a good month for the SPLS stock but for the time being there is a resistance level at $22.50 if you look at the daily chart, which I expect to push the price a bit lower and gain momentum before it can break free above that level. Watching the stock price in the 60 minutes chart will help understand whether the price will indeed push back or form a large green candlestick overcoming that resistance.
SNDK stock pick performed exceptionally as it gained $5 per share in just 3 days, which translates in more than 11% price increace! Although I didn’t expect the price to climb above $42, it actually did so within a day forming a strong candlestick with almost no shadows. In fact the buyers’ power was so strong on Monday that the stock opened with a gap, indicating a very powerful movement. I will be surprised if the SNDK stock does not lose some momentum at $50 mark and possibly become a major reversal point. Of course before you decide on trading the stock against the trend, be sure you see proof of possible reversal, otherwise you could have been trapped in a very strong uptrend.
My final stock pick for this week, NYT, performed exactly as predicted and I am expecting a retracement today or next week. The price has been trending nicely up to the upper trend line and the long tail of Tuesday’s candlestick indicate sellers’ reaction. I would be looking to trade out half of the position if not all at this point, taking the 90c per share profit and look for other trading opportunities. There is some chance the stock aims for higher prices, but a safer trade would be when the stock retraces back to the lower trend line and go from there.
3 out of 3 stock picks these week and hopefully more to come!