TOW Archive

Below you'll find an archive of our Trade of the Week picks.

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01/10/22

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

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01/03/22

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

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12/27/21

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

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12/20/21

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

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12/13/21

KB Home (KBH) is Your Trade of the Week

This week we use a top down approach from sector to stock using our “Similar” tab on the Trade Ideas Single Stock Window. This tab allows us to type in a symbol and then look at its peers to see relative strength or weakness of a particular company’s chart.

The Home Builders sector (XHB) is very strong right now and many names are trading at breakout-type levels. Using the Similar tab to examine some of these charts, KB Home (KBH) stands out as a well-known name that is lagging behind its peers. The daily chart of KBH looks poised and consolidating to move higher.

The Trade of the Week in KBH will be considered live above 44.95. The suggested risk management for this idea is to not let the price of KBH close underneath the rising 20-day simple moving average in red. A good price target here would be 50.00.

Other names to watch: DWAC VRSN INTU CFVI

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12/06/21

Pfizer, Inc. (PFE) is Your Trade of the Week

The volatility is picking up in the major indexes so this week we are simply looking for relative strength; something that is holding up quite well considering the up and down volatility of last week.

With Pfizer, Inc. (PFE) we have all the elements in place for a good setup. Obviously the news cycle is positive for PFE right now. But does the chart confirm the story? Yes it does. PFE has a solid flagging pattern to confirm the news cycle it is in right now.

The Trade of the Week in PFE will be live at 55.10. The suggested risk management of this idea is to not let the price close underneath the rising 20-day moving average indicated by the arrow. This would be an all-time high for PFE so the price target is up to you.

Other names to watch: EIX PPSI GDX

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11/29/21

Blink Changing Co. (BLNK) is Your Trade of the Week

With the Friday sell-off in the major indexes, we will be looking for something that has pulled back to a level of interest for the official Trade of the Week. As usual, there will be additional names below to keep on your radar this week for swing trading.

The EV sector has been showing good strength lately with some names pulling back and other names making strong momentum moves higher. The A Table Top List scan has found a great candidate for an Electric Vehicle play that has a high short float % and has pulled back to the 20-day sma. Blink Charging Co. (BLNK) seems like a good risk/reward entry down here

The Trade of the Week in BLNK will be considered live above 39.47. Ideally the price continues to close above the 20-day sma red line if 39.47 is taken out. The suggested risk management is to not let the price close below the 200-day sma now around 30.05. A target of 50 dollars is in play here. So we will risk around 4 dollars to make over 11 dollars if the target is hit.

Additional names to watch this week: GOEV EVGO CWH

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11/22/21

PubMatic, Inc. (PUBM) is Your Trade of the Week

With market indexes hovering around all-time highs, we will once again look for a short squeeze setup in this environment. This is not the time to be short and the short sellers might be itching to get out of some positions that are highly shorted, such as our next pick for Trade of the Week.

Using the A Table Top List once again we see a name with a low float of 17 million shares and 40% of those shares are held by short sellers. PubMatic, Inc. (PUBM) looks to have reported great earnings on November 9th. With a gap, volume and consolidation right here, this one fits our criteria for a possible short squeeze this week.

The Trade of the Week in PUBM will be considered live above Friday’s high of 40.30. The suggested risk management will be to not let the price of PUBM post a closing candle underneath the rising 10-day sma. A simple price target to sell a portion or all of PUBM would be 45.50. We will go over this trade as it unfolds on our next Tuesday webinar on 11/29.

Other names to watch closely: BLNK MARA LTHM PLUG RIOT

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11/15/21

Academy Sports and Outdoor, Inc. (ASO) is Your Trade of the Week

Don’t forget to scroll to the bottom of this email for additional ideas as discussed in our last webinar.

The Fed-driven market continues higher with nothing to stop it. Even inflation fears just drive stocks higher it seems. The retail sector looks poised to take the reins this week and many retail names are showing up on our scans.One in particular is standing out.

Looking at the “A Table” scan this week, Academy Sports and Outdoors (ASO) looks poised and ready for a short squeeze from this healthy consolidation we see on the daily chart. With 84 million shares in the float and 27% of those shares being held by short sellers, ASO looks to be the one to go with this week.

The Trade of the Week in ASO will not be live until it gets above 47.67. The suggested risk management in this idea will be to NOT let the price of ASO close underneath the rising 20-day moving average indicated by the arrow . The suggested target is up to you as this would be an all-time high for ASO.

Please also watch: VSTO DKS VOYA CVS PLBY LTHM NCTY

Trade of the week - chart 1
Trade of the week - chart 2

11/08/21

First Solar, Inc (FSLR) is Your Trade of the Week

We are right in the middle of earnings season now and it’s best to look for things with great charts that just came off their earnings reports. It’s never a good idea to gamble with a position as a swing trader by taking that position into earnings. But if we wait and see the initial reaction, that gives us more protection against a violent move against us.

The daily chart of First Solar, Inc. (FSLR) looks to have reacted kindly to the earnings report last Thursday. With a nice flush of sell orders and a spring back recovery above the rising 10-day simple moving average. The chart of FSLR seems to have tested the will of the sellers and is looking to move higher.

The Trade of the Week in FSLR will be considered live above 117.60. The suggested risk management is to use the low of Friday’s long bottoming tail candle at 111.50. Stocks above 100 dollars can still post nice % moves over a few days, you just need to use a smaller amount of shares to accommodate the risk level stop if that occurs.

Also watch FSM GDXJ FSR INVA

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Stock List - FSLR

11/01/21

Cleveland Cliffs, Inc. (CLF) is Your Trade of the Week

This week we are revisiting a previous Trade of the Week because it is setting up again for a decent swing trade opportunity. Almost one year ago, we called CLF a great looking setup back when it was under 10 dollars. Fresh off of their recent earnings report, CLF is breaking out of congestion once again and has our attention.

Only this time, the entry will be on a pullback rather than a breakout. Please read closely this week as we are looking for the stock to pull back for the entry rather than buy a breakout. The current market dynamics call for more contrarian-type entries than we have used in the past. Using the 10-day sma as support on a down day will be our buying method this week. Please wait for the trigger price using a limit buy order if you wish.

The Trade of the Week in CLF will not be considered live until it pulls back and touches 23.50. You are guaranteed this price if you just use a limit order at 23.50 to buy. Be ready, it could happen fast. The suggested risk management for this trade idea is to not let the price of CLF close below the rising 20-day sma in red

Other names to watch this week: MNMD FUV PFE VLTA SOLO MCMJ.

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10/25/21

Box, Inc. (BOX) is Your Trade of the Week

Please do not forget to take a look at the bottom of this email for additional ideas aside from the official Trade of the week. Energy names are showing up everywhere and may have a good week. Since last week was an energy name (REI) we will continue to let that one play out along with additional energy names at the bottom of this email.

BOX, Inc. showed up on one of our Trade Ideas scans as it consolidates on the daily chart seen below. Any attempt to move up and out of this consolidation wedge could give us some nice price action higher.

The Trade of the Week in BOX will be considered live above 26.44. The suggested risk management on this idea is to not let the price of BOX close underneath the rising 20-day SMA indicated by the orange arrow just above 25.00. A realistic price target for BOX will be 30.

Please do not lose sight of these other names this week: CVE CLNE DHT NMRK CNP PBF RRC

Trade of the week chart - BOX
Trade of the week chart - BOX

10/18/21

Ring Energy, Inc. (REI) is Your Trade of the Week

The recent strength in the energy and natural gas sector has been getting lots of attention. There are many names from this sector showing up on scans that we monitor. The trick is always in the timing of an entry. The Trade of the Week always tries to identify a chart that has the best looking consolidation for a timely entry when called out.

The A Table scan has once again given us a chart that seems to be setting up with good timing if the trend should continue. Ring Energy, Inc, (REI) showed tremendous strength 2 weeks ago and looks to be consolidating for another push higher.

The Trade of the Week in REI will be considered live above 4.00. A move above 4.00 with some volume behind it should help the short sellers buy it back to stop their losses on this nice looking daily chart with a “flag’ pattern. The suggested risk management for this idea will be a hard stop of 3.60.

Also keep an eye on these two names: GLNG RIOT

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10/11/21

SPDR Select Financial Sector (XLF) is Your Trade of the Week

The major indexes are still under technical pressure. Periods like this allow for sub-sectors to stand out. With interest rates on the rise, it seems that banks and financial institutions have been holding up relatively well. Relative strength can be a major indicator when evaluating charts in choppy markets.

Rather than focus on one specific bank or one single financial institution as our Trade of the Week, we will use the SPDR Select Financial Sector (XLF) as a vehicle to trade. The daily chart of XLF has been holding up during recent turmoil and is now showing signs of wanting to break out.

The Trade of the Week in XLF will be considered live only above 39.24. The suggested risk management for this ETF trade will be to not let the price close underneath the rising 20-day simple moving average. Right now, this is just under the 38.00 level indicated by the orange arrow on the daily chart.

Other financial names to watch: RF HBAN ZION SYF
Also keep an eye on MARA as the AI “Holly” saw something in that name Friday.

Trade of the week chart
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10/04/21

ZIM Integrated Shipping Services (ZIM) is Your Trade of the Week

Just a few weeks back, the Trade of the Week was a shipping company that did not disappoint us (DSX). This week, we want to stay focused on another shipping company so we turn to the Trade Ideas “Similar” tab on our Single Stock Window. Starting with DSX, we searched the similar tab for something that caught our eye. ZIM Integrated Shipping Services (ZIM) was on the list over the weekend.

In this type of market, buying the stocks that have had a nice pullback or basing period seem to work better than the momentum plays of late 2020. The daily chart of ZIM is giving us a nice, clean pullback to the 50-day simple moving average with a bottoming tail wick in the candle as well. This seems like a safe entry in a hot sector right now; shipping.

The Trade of the Week in ZIM will be considered live above 51.30. The suggested stop for this swing trade idea is to not let the price get under the well defined bottoming tail candle from Friday at the 47.35 area.

A few other names to keep an eye on: EQT FCEL ASO

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09/27/21

Ashford Hospitality Trust (AHT) is Your Trade of the Week

With Last week’s idea having triggered and more importantly having followed through, we will look to a similar setup on the charts this week. The scan we call “Revenue Growth Fishing” has found a chart that seems to be ready to come up and out of the strong base pattern it has established. No trending charts this week, only basing ones were getting our attention.

Ashford Hospitality (AHT) has finally moved up and above the declining 50-day simple moving average. Many stock charts have been held down by this particular moving average. But the ones that do make it up and through seem to have more follow thru much like the chart for RIDE last week.

The Trade of the Week in AHT will be considered live above 15.91 from the high of Friday. We will use a hard stop of 14.05 this week instead of a moving average. The moving averages in RHT are all very close to the current price so a hard stop of 14.05 will be our risk management in this idea.

It was hard to pick between 2 charts this week.
The other name to watch is HOOD.

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09/13/21

Pixelworks, Inc. (PXLW) is Your Trade of the Week

The general condition of the market indexes will be on watch this week as Friday had some technical damage done to SPY and QQQ. If there is continued followthru to the downside with more selling, the Trade of the Week may not fare as well.

But in the interest of having something on standby to purchase, we want to focus on strong charts that have had a recent pullback to levels that make sense. Pixelworks, Inc. (PXLW) has pulled back to the 20-day moving average and may be looking to build a higher-low from the volume and price breakout in mid-August. We will use Thursday’s high as our trigger and hope the general market indexes behave.

The Trade of the Week in PXLW will be considered live above Thursday’s high at 5.88. The idea here is to have a very tight range of risk management. Therefore, the suggested stop will be to not let the price of PXLW close underneath the rising 20-day simple moving average indicated by the arrow. If that happens, there will likely be more downside to work off and there is no point in sticking around for that.

Also watch the price action of PLAY in case that one comes to life as a secondary idea

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08/30/21

Livent Corp. (LTHM) is Your Trade of the Week

A new scan is being used this week. “Nice Setup” is a Trade Ideas Top List that utilizes our “position in range” family of filters. This particular scan looks for companies that are healthy on just about every time frame using our “position in range” filters.

Livent, Corp. (LTHM) has been on our radar for a couple of weeks, and now the timing seems to be right to declare it this week’s Trade of the Week. As of Friday, LTHM was the strongest name on this scan when we sort by the change from the close % column. Ideally, this stock symbol will not gap up on Monday and give us a chance to set a price alert from underneath.

The Trade of the Week in LTHM will not be live until it gets above 25.40. If the stock should gap up (like many others lately) use your own judgement on the entry. Some people like to wait and see if there is an attempt to fill the gap before making their entry. The suggested risk management is to not let the price of LTHM close under the rising 20-day sma in red as indicated by the arrow in the chart below. The price target is up to you as this would be all-time highs above 27.28

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08/23/21

Innovia, Inc. (INVA) is Your Trade of the Week

Many of the past Trade of the Week ideas have derived from a Trade Ideas scan called “The A Table”. A few improvements to that scan have been added by the traders here and it’s now called “The A Table 2.0” This scan will look for strong charts using our proprietary Score filter. But, it only shows us highly shorted stocks that may be ready for a short squeeze higher.

Innovia, Inc. (INVA) has been strong as of late. It’s also giving us a nice 3-day pullback right into our momentum indicator; the 10-day simple moving average. We will use this level to watch for buyers stepping back in to continue the trend higher. The float of the stock is around 100 million shares and 34% of those shares are held by short sellers. If we get any bounce this week, the short sellers may throw up their hands and buy the stock back to close their positions.

The Trade of the Week in INVA will be considered live above the Thursday high of 16.19. Our anticipated support level to use as risk management will be to not let the price of INVA close under the rising 20-day sma in red around 15.00 (chart arrow included). The price target for this idea will be 20.00 as that is a prior high from the past.

INVA Chart
INVA Chart

08/16/21

Silicon Laboratories, Inc. (SLAB) is Your Trade of the Week

Semiconductors have been a solid performing sector as of late and a few of them are showing up on some of our swing trade scans. One such scan is the “Bull Flag Daily Setup” Top List. This scan will look for consolidation of strong charts and we look at those names one by one to find the real gems.

Silicon Laboratories (SLAB) has come off strong earnings and consolidated in a tight sideways flag that is now being challenged by the rising 10-day simple moving average. If SLAB is to continue the momentum higher, chances are it will be forced higher by this moving average coming up underneath.

The Trade of the Week in SLAB will be considered live above 159.05. Even though this name is above 100 dollars, you can still use a smaller share size amount that will reward higher prices should the trigger occur. The suggested stop in this name will be to monitor the price action and get out if the price of SLAB decides to close under the rising 10-sma and lose its momentum. Once momentum is lost we do not want to be in this trade..

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08/09/21

Cleveland-Cliffs, Inc. (CLF) is Your Trade of the Week

It continues to be a stock pickers market out there. The breadth of stocks making new 52 week highs is shrinking. Fewer and fewer names are holding up indexes. The Infrastructure bill looming out there will likely be good for steel stocks. But as always with us, the chart must confirm the story.

Cleveland-Cliffs (CLF) is holding up on a strong chart that may be ready for a leg higher. Our “Pullback Above 50 SMA Long” scan brought this to our attention on Friday. The price action recently has pulled back and consolidated well at the rising 10-day sma. This should act as a “base camp” for a move higher.

The Trade of the Week in CLF will be considered live above Friday’s high of 24.12. The rising 20-day sma in red will act as our backstop for this trade. We do not want to let the price of CLF close underneath this rising 20-day sma. A realistic target for this swing trade will be 27.50. Happy trading.

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08/02/21

Twitter, Inc (TWTR) is Your Trade of the Week

With earnings season in full swing, many companies are reporting continued success. One of the noticeable trends has been that of Big Tech and social media stocks remaining strong. Twitter has always been bringing up the rear when compared to the stock price of others in Big Tech names.

With earnings out of the way, and a chart that finally looks like it wants to make a move higher, we will be watching closely for a breakout of the wedge forming on the daily chart of TWTR.

The trade of the week in TWTR will be live above the wedge breakout of 71.93. The suggested stop will be to not let the price of TWTR close under the rising 20-day sma in red. The suggested target will be the prior all-time high around the 80 dollar mark.

Other names to watch this week: FUV RIOT

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