Below you'll find an archive of our Trade of the Week picks.
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Teucrium Wheat Fund (WEAT) is Your Trade of the Week
What a volatile few weeks it has been for stocks. Last week’s idea is still very much in play under the symbol MRK. For this week, we are going to focus on a commodity fund. Teucrium Wheat Fund (WEAT) is a fund that tracks the prices of Wheat futures.
Right now, wheat shortages are in the news and with this tradable fund (WEAT) we can participate in a chart that confirms the story. The price chart of WEAT has held the 50-day simple moving average recently and has turned up to break out of an obvious wedge on decent volume.
The Trade of the Week in WEAT will be live above 11.74. The suggested risk management is to use the 50-day sma and not let the price of WEAT close underneath the rising 50-day moving average.
Also watch: AMCR SIMO GOGL SWX HPK
Merk & Company (MRK) is Your Trade of the Week
Last week’s idea never triggered and we saw another week of volatile turmoil in the markets. It is very treacherous out there right now. If we look hard, we can always find something that is holding up and disregarding the general backdrop of selling in the major indexes.
Merk & Company (MRK) had recent earnings and has quietly consolidated into a strong chart that looks nothing like the rest of the market. Who knows why, but the chart tells the story with the recent price action giving us a clean consolidation above the rising 10-day simple moving average.
The Trade of the Week in MRK will be live above the price of 88.92. The suggested risk management for this idea is to not let the price of MRK close below the rising 20-day sma in red.
Also watch: ICPT ARCH GEO and PFE to the downside (looks weak)
CF Acquisition Corp. (CFVI) is Your Trade of the Week
This week is tricky because there is a complete technical breakdown going on in the major market averages right now. Continued selling is likely this week in so many names. All we can do in times like this is look for a story stock that is confirmed on the charts.
CF Acquisition Corp. (CFVI) has found some buying action with the recent Twitter news. CFVI is the SPAC (Special Purpose Acquisition Company) that allows Rumble Video platform to trade publicly. This name has broken out of a very tight basing range and closed above the 50-day sma. While most stocks are breaking down, this SPAC is shaping up to be our Trade of the Week.
The Trade of the Week in CFVI will not be live until it gets back above 12.50. There is a chance CFVI could gap up on Monday so plan your entry accordingly. The suggested risk management for CFVI is to let the 20-day sma come up underneath and support this trade. If it closes below the 20-sma, then momentum is dying and cutting the trade is wise.
CASH is Your Trade of the Week
There was absolute technical carnage in the SP500 and Nasdaq last week. There was not a single sector to be found as a safe haven during that 2-day selloff.
In times like this, CASH can be a position of defense. There is absolutely no reason to attempt buying the technical breakdown we have on the backdrop of the market indexes right now. We are going to let the market sort things out for another week before looking for more stable opportunities.
The charts of SPY and QQQ are broken for the time being.
Transocean Ltd (RIG) is Your Trade of the Week
The commodity, precious metals and energy sectors seem to be the only bullish sectors in play. Tech stocks look terrible. So this week our focus is going to be in the oil and gas drilling service sector.
Transocean Ltd (RIG) was recently a Trade of the Week that did work out due to extreme volatility that week. RIG is now setting up with a completely different chart pattern than before. With many companies similar to RIG breaking out again, there is no harm in revisiting the same name for a second try.
The Trade of the Week in RIG will be considered live at 4.70. That level should confirm a breakout of the current wedge developing. The suggested risk management will be to not let RIG close back below the rising 50-day sma in blue
Also watch: BORR VET EGO CDE
iShares U.S. Real Estate ETF (IYR) is Your Trade of the Week
This week we’ll focus on a sector rather than an individual company name. Using a top down approach starting with the sector can usually lead to a great setup using just the sector ETF to diversify some risk in case of single-stock news surprises.
There seems to be a sudden interest in the Real Estate Investment Trust (REIT) names. It could be that large funds are seeking to get exposure to high paying safe dividends that REIT’s usually offer. The only thing that matters is; does the chart confirm the story? In the case of IYR, yes it does. The tight consolidation above the rising 10-sma has our attention for higher prices.
The Trade of the Week in IYR will be considered live above 110.75. If you understand options, you can always consider an option position on this trade idea. The suggested stop will be to not let the price of IYR close beneath the rising 20-day sma in red.
Also watch REI NUGT CTVA NEM CF
Barrick Gold Corp. (GOLD) is Your Trade of the Week
The only sector that looks extremely bullish out there right now are the precious metal companies. Many of these names in the Gold mining industry look ready to break out to new 52 week highs while other market indexes remain tepid.
The chart must always confirm the story when swing trading. With the recent news of Russia looking to tie their Ruble to physical gold, the charts that track gold mining stocks such as GDX are paying attention. Many big names in this space are already making a move. Barrick Gold Corp. (GOLD) seems to be lagging behind, stuck in a tight range. This is a perfect setup for the Trade of the Week for April 4th.
The Trade of the Week in GOLD will not be considered live until the price moves above 25.14. There is a high likelihood that the stock price of GOLD may gap up above our price trigger. You may have to even reach up and buy if there is no early gap fill. The suggested stop will be to not let the price of GOLD close under the rising 20-day sma indicated by the arrow.
Also watch IBB INVA DNA NUGT
First Solar, Inc. (FSLR) is Your Trade of the Week
Many sectors and charts out there are trying to “dig in”. One sector of interest this week are the Solar stocks. These names are consolidating at critical levels and seem ready to make a move up and out of consolidation.
First Solar, Inc. (FSLR) has one of the cleanest looking charts out there. The chart shows a double-tested low around 62. The recent price action of FLSR has broken back above the 10, 20 and 50-day simple moving averages. It seems like a straight shot up to the 200-day sma around 90.50 could be in play for a quick move in this idea.
The Trade of the Week in FLSR will not be considered live until it breaks above 80.50. The suggested risk management for this idea will be to not let the price of FSLR close under the rising 20-day sma indicated with the arrow.
Also watch: FSR, PTEN, DNA (earnings), MNMD (earnings)
Archer-Daniels-Midland (ADM) Is Your Trade of the Week.
Hello friends. The markets saw a nice lift higher last week and because of this, many charts look the same; a bit tired after a nice 4 day run. So for this reason we are looking for something that is still consolidation rather than looking for something to chase after 4 green bars already.
Using the Trade Ideas scan called “Above all Moving Averages” we can find some good names that have been holding up and consolidating well. The chart of Archer-Daniels-Midland (ADM) confirms the story that we are hearing about agriculture shortages. If the price of ADM can move out of this recent base-camp, it should be a good name and sector to focus on this week.
The Trade of the Week in ADM will be considered live above 84.50. The suggested stop will be to not let the price of ADM close underneath the rising 20-day simple moving average in red. 88 would be a new all-time high so the ultimate target is up to you.
Also watch NTR RKDA UAVS RTX ARCH BTU NEM
Transocean Ltd. (RIG) is Your Trade of the Week
The energy and commodity boom is still on. This is where the buying interest still lives as the rest of the stock sectors are looking more and more feeble each week. We never want to chase momentum after it has occurred. Instead we want to wait for consolidation to give us another setup in these commodity charts.
Transocean Ltd. (RIG) seems to be lagging the other energy related names but also seems to be consolidating nicely just above the 10-day sma. This moving average is simply the guiding hand of momentum and tells us when it is time to get back in. So once again, we are waiting for a pullback near the 10-day sma to give us a better entry than chasing a new breakout.
The Trade of the Week in RIG will not be live unless it pulls back to 4.50. RIG closed at 4.73 on Friday. Ideally the 4.50 level will come early on Monday morning and give us a pullback entry. The suggested stop will be to use the same 10-day sma and not let the price of RIG close below that line.
Also watch: RKDA, AG, TGB, ALTO, CDE
Canadian Solar Inc, (CSIQ) is Your Trade of the Week
It has been all about gold and energy so far this year. Solar companies are now starting to make some noise and they are on our radar for the coming week. Many of these names have been in horrible downtrends for quite some time.
Canadian Solar Inc. (CSIQ) has one of the better looking charts out there. The technical downtrend has been broken and 3 days of pullback into a key moving average give us good timing to take an entry. More solar names to watch will be listed below. But for now…
The Trade of the Week in CSIQ will be considered live at 31.14. There is always a possibility for a gap up on Monday. If this happens, it’s up to you whether you want to chase a gap or wait for an early pullback close to the entry price to take your position above 31.14. The suggested stop will be to not let CSIQ close under the rising 10-day sma in red.
Also watch: FSLR ENPH RKDA CTVA
Arch Resources, Inc. (ARCH) is Your Trade of the Week
The market volatility is off the charts from last week. For this reason, we will be looking at a relative strength sector play; energy. The energy sector is really the only sector that was unfazed by the geopolitical news and market volatility of last week.
Using the Trade Ideas scan called “The A Table” we can see an energy name with a low float and a very high short % of that float. Arch Resources, Inc. (ARCH) has only 15 million shares in circulation for trading and 33% of those shares are held by short sellers who will need to buy the stock back if it keeps going higher. This recipe for a short squeeze is going to be our Trade of the Week.
The Trade of the Week in ARCH will be considered live above 118. The suggested risk management for this idea is to not let the price of ARCH close under the rising 20-day moving average (indicated with an arrow).
Other names to watch: VET CORT BTU PTEN
VanEck Gold Miners ETF (GDX) is Your Trade of the Week
First and foremost, this is going to be a pullback alert to a certain level before buying. Do not just simply buy this name on the open as we think we can get a better price with patience. The technicals of the stock market are not good. Since January 1st, SPY is down -8.6%, QQQ is down -14.2% and IWM is down -10.3%.
The Gold mining sector is up 7.7% so far this year. Money seems to be running to energy and the safe haven of gold assets as we can in the sector scan below. VanEck Gold Miners ETF (GDX) had a nice run last week and it’s not in our nature to chase but rather wait for a better price when able.We are going to wait for a pullback that makes sense to enter this idea.
The Trade of the Week in GDX will be live only if it comes back down to 33.55 to fill that gap and be closer to the rising 10 sma. If the price does trigger at 33.55, the suggested stop will be to not let GDX close under the rising 10-day sma that is coming up to support it.
CF Industries Holdings, Inc. (CF) is Your Trade of the Week
The SP500 and the Nasdaq closed with some technical damage once again on Friday. Many recent support levels failed and we may see lower index prices this week because of this. When this happens we look for the right sector to see what is holding up well relative to all the selling out there. It’s time to go to the relative strength scans.
The fertilizer and agricultural/chemical stocks have been quietly moving higher in response to the terrible supply chain issues and this is causing some concern. The charts of these companies confirm this concern with all the relative strength. The name we will focus on is CF Industries Holdings Inc. (CF). We are hoping to catch the follow-thru of this cup and handle formation on the CF daily chart.
The Trade of the Week in CF will be live above 77.00 this week. Any follow thru of this number may find continued momentum. The suggested stop will be to not let the price of CF close under the rising 10-day moving average which is around 73.60 right now.
Other agriculture names MOS RKDA
Robinhood Markets, Inc (HOOD) is Your Trade of the Week
Earnings season is now in full swing. Some companies are surprising while others are disappointing. It always comes down to market reaction after earnings. Some companies have been in such horrible down trends that the reaction to earnings really has nowhere to go but back up. Robinhood Markets, Inc. (HOOD) is one of the companies that looks to have put in a technical bottom after their earnings report.
The chart of HOOD initially sold off after earnings then it reversed on strong volume while the rest of the market indexes were heading lower. The risk reward for setups like this can’t be beat. All of the bad sentiment has been priced into HOOD while giving us a clear selling point to get out if the stock price does not drift higher over the coming weeks.
The Trade of the Week in HOOD will be live at the opening bell. Any entry above 14 will work. The suggested risk management for this idea will be to not let HOOD close underneath 11.50 indicated by the small arrow.
Also watch: CFVI DWAC
Vermilion Energy Inc. (VET) is Your Trade of the Week
The major market indexes are technically broken and officially in “correction” territory until further notice. With the Trade of the Week always looking for buying opportunities rather than short selling setups, it only stands to reason that we look for relative strength right now.
The relative strength has been in the energy names as of late. The selloff in the major indexes has not deterred many of the oil and gas names out there. Vermilion Energy, Inc. (VET) has a strong chart that is coiled up around 52-week highs. Forget trying to pick bottoms and pullbacks, this week calls for something that has already shown strength.
The Trade of the Week in VET will be live above 16.00. The suggested risk management will be to not let the price of VET close under the rising 20-day sma in red. A good price target would be anything above 20 dollars to sell some of it.
Also watching: PBF CDEV DWAC
Newmont Corporation (NEM) is Your Trade of the Week
Last week was significant in that both the Nasdaq and the SP500 closed under their respective 200-day simple moving averages. The winds seem to be shifting out there as fund managers look for new safe havens. Technology seems to be out of favor now with the technical breakdown of QQQ.
One of the few sectors that seem to be holding up is the gold mining sector. It seems the technology sellers could be looking for a defense posture in gold mining companies. We spotted Newmont Corp. (NEM) which is the bellwether of gold mining companies out there. NEM is now above its 200-day sma while SPY and QQQ have fallen below theirs. A flight to safety seems to be here for now.
The Trade of the Week in NEM will be live at any price on Monday. In fact we even expect some sort of gap opening for NEM. So the entry is up to you as there is no real price trigger this week. The suggested risk management is to not let the price of NEM close under the flat 200-day sma around 60.80.
Southwest Airlines Company (LUV) is Your Trade of the Week
Last week, the major indexes fell under some pressure. One sector of note that held up during this time was the Airline sector. Many names in the Airline sector (JETS) have been consolidating sideways for the last week or so. The name that looks the best on a daly chart is Southwest Airlines Company (LUV).
One of the hardest technical hurdles for individual names lately has been clearing the declining 50-day simple moving average and building a base above it. So many charts out there have been denied and slammed lower once they have touched the declining 50-day sma. LUV has not only cleared it but has built a ‘base camp’ on top of this level.
The Trade of the Week in LUV will be considered live above 46.00. The suggested near term target will be the declining 200-day sma lurking above around 51.50. The suggested risk management will be tight by not allowing the price to fall and close back below the 50-day sma around 44.75. There is a good risk:reward ratio here.
Other momentum names to watch: FE KEY HBAN ZION CFVI
Peabody Energy Corp (BTU) is Your Trade of the Week
Energy names have started off the new year with a bang. We have found an interesting energy name using the Market Explorer scan here at Trade Ideas. The Market Explorer is a new tool that will display pre-canned ideas that are common setups used by many veteran traders. The daily “Bull Flag” scan alerted us to the chart of Peabody Energy Inc. (BTU) as having a nice looking chart with the potential for higher prices.
BTU has a textbook rounded basing pattern that held the 200-day sma and is now back above all key moving averages. The price action is consolidating in a nice flag pattern that looks to move higher after suffering a 50% drawdown from the highs back in October. So now we have a nice risk/reward ratio trade idea for the week.
The Trade of the Week will be considered live above the 5-day high of 12.18. The suggested stop will be to not let the price of BTU close under the 20-day sma in red. A good target level will be to sell some at 16.00.
Also watch: WE JBLU LUV
Zillow Group, Inc. (Z) is Your Trade of the Week
With the selling pressure from tax loss selling in the 4th quarter of 2021 gone, we can now look for some beaten up names that are showing a strong basing pattern. Sector rotation in the new year is a real thing as investors and fund managers pick through the rubble and look for the value names in the new year. .
Zillow Group, Inc. (Z) had a rough 4th quarter with a 50% correction due to their real estate portfolio business failing them. The damage has been done and this bellwether internet platform is showing good signs of a technical base pattern now. Our “Revenue Growth Fishing” scan found this name and many other names for us to consider.
The Trade of the Week in Z will be considered live above 64.30. The suggested risk management is to not let the price of Z close under 57.60 indicated by the arrow showing that level of support. Two good targets would be 76 and 86 (also indicated by arrows). The first hurdle will be to get a few days to close above the 50-day sma lurking in blue.
Also watch ACCD VET NOK MCHP
iShares Biotechnology ETF (IBB) is Your Trade of the Week
Rotation of sectors remains the name of the game in this current market environment. Rather than pick an individual name, we will once again set our focus on a sector that appears to be ready for the rotation of buyers.
iShares Biotechnology ETF (IBB) is fighting to regain control of the flattened 50-day simple moving average with the 200-day moving average looming just above. It will be important for the price of IBB to remain above this 50-day moving average this week,
The Trade of the week in IBB will be considered live above 155.17. The suggested risk management will be to not let the price close below the 20-day moving average seen marked with an arrow. This is a basing pattern play rather than trend following breakout, Basing patterns are more likely to attract rotation of the large value fund managers.
Also watch: PGR PFE DWAC MARA RIOT
iShares U.S. Real Estate ETF (IYR) Is Your Trade of the Week
The FOMC sent the markets into a few days of high volatility last week. This week, the focus will be on an ETF rather than a single stock. The daily rotation from sector to sector does not last long these days as the proverbial baton is handed back and forth between sector ETFs.
A sector that is looking good this Monday is the iShares U.S. Real Estate ETF (IYR). It has remained above all key moving averages while many other names and indexes remained volatile and under pressure.
The Trade of the Week in IYR will be considered live above the current all-time high of 112.65. The suggested stop will be the rising 50-day moving average (see arrow) coming up around 109.50. If the market is ready to rotate into a strong looking daily, weekly, and monthly chart, then IYR is a great candidate to participate.
Also watch the IBB as an alternate ETF