June is turning out to be exciting.
There’s the mid-year school holidays.
And Nvidia’s anticipated 10-for-1 stock split.
You’ll get 10 shares for every share of Nvidia you own before 10 June 24.
From 10 June 24, Nvidia’s share price will become more accessible to retail traders, as it should be about 1/10th of its current price.
As we wait in excitement, let’s review the month of May.
I’d shared 4 stocks to watch for May. Would you like to find out how our #PowerStocks picks performed?
- Genuine Parts: Loss of ~3%
- Qualcomm: Gain of ~18%
- Arch Capital: Gain of ~5%
- Crocs: Gain of ~6%
You would be up by 6.7% if you’d followed the #PowerStocks picks shared in May.
How does this performance compare to the S&P 500?
The S&P 500 rose 5.4% in the same period, trailing the performance of our #PowerStocks picks by almost 20%!
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Before sharing this week’s #PowerStocks pick, let’s review last week’s stock pick: Crocs (CROX).
Review Of Last Week’s Pick Of The Week
Crocs (CROX) was last week’s #PowerStocks pick.
After pulling back to $139 as forecasted, its share price rebounded to $148.92 on Fri.
That’s a cool 6+% in a week!
After an explosive move in a week, I encourage you to consider shifting your stop loss higher to protect your open profits.
With a clear game plan for Crocs’ stock, let’s turn our attention to this week’s stock pick: Cognex (CGNX).
Why Is Swing Trading Cognex (CGNX) Worth It?
Source: cognex.com
Cognex (CGNX) is this week’s #PowerStocks pick.
This company supplies machine vision products and solutions that improve efficiency and quality in many businesses, including the semiconductor industry. Cognex has also developed the world’s 1st 3D vision system powered by AI.
And its returns have been impressive!
While the S&P 500 has surged about 6% from its low in late-Apr 24, Cognex’s share price has surged more than 22% in the same period. That’s a return of nearly 4x more!
And there’s more.
The share price of Cognex has been exploding repeatedly, bringing big returns for swing traders.
Furthermore, its share price seems to be pulling back, indicating that the next opportunity for an explosive swing trade is near.
What’s the price area I’m watching for an entry?
Continue reading to get the details.
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Performance Of US Stock Market vs Cognex (CGNX)
Can you tell that the share price of Cognex and the S&P 500 are in an uptrend?
By trading with the trend, you increase your chance of making money from the market.
Hence, you’ll want to be on the lookout for buying opportunities.
But before you do, it’s important to know the performance of the S&P 500.
Can you see that the S&P 500 has only risen by about 5% in the past 3 months?
In comparison, Cognex’s share price has risen by more than 20%, outperforming the S&P 500 by an eye-opening 4x!
This tells you this important information – your money is more likely to bring greater-than-market returns, making your trade worthwhile.
How Explosive Is Cognex (CGNX)?
As a swing trader, you’ll want your money to work hard for you, bringing you big gains in days.
Therefore, you’ll want to trade stocks with a predictable and explosive nature.
Have the shares of Cognex exhibited explosive upmoves?
In the past 10 months, Cognex shares have enjoyed 14 upmoves, measuring between 4.4% and 26.3% each.
Upmoves of this magnitude are highly impressive for a company with a market capitalization of more than $8.5b.
What’s the best part?
Its shares look to be pulling back, indicating that an explosive swing trading opportunity could emerge soon.
Where is its share price likely to pull back to before you consider an entry?
Let’s discuss this in the next section.
Key Price Levels
Uncovering the key price levels will help you know whether the timing for an explosive swing trade is ripe.
Yes, these key price levels are also known as support and resistance zones.
Can you see a support zone ~$44.50?
Given that the share price of Cognex has risen 26.3%, you can reasonably expect its pullback to be deeper than usual. When its share price has reached ~$44.50 and bounced, I’ll be keen on an entry for a swing trade.
Let’s wait for the pullback patiently.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
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Worse still, ~80% of traders lose money.
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