Global-E Online: #PowerStocks Series Pick Of The Week (December 2024)

The season of joy and giving is here! As many of us finally slow down, others are picking up their pace. Yes, those in retail, F&B, logistics, tourism, and hospitality are running at full speed. Hang in there if you're in the industries mentioned above. While the S&P 500 closed the week 2.16% lower, there is no big concern. The market is still in a strong uptrend, and swing trading opportunities are present. Before I share my thoughts on this week's stock pick, shall we review last week's stock #PowerStocks pick, Royal Caribbean (RCL)?

Review Of Last Week's Pick Of The Week

Royal Caribbean (RCL) was last week's stock pick. As a cruiseliner, it belongs to the Consumer Discretionary sector, and plays on the theme of vacation. A key price level was identified at the area of $242. I was waiting for a bounce before buying its shares for an explosive swing trade. However, its share price didn't bounce, so the trade didn't materialize. This was good because it saved me from losing money! Fed Chairman, Jerome Powell, spoke on Thursday, stating that the pace of rate cuts in 2025 will slow down. That spooked the market, resulting in a massive sell-off. With money saved from this drop, let's find out whether Global-E Online shares are ready to explode in price soon!

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Why Is Swing Trading Global-E Online (GLBE) Worth It?

Source: global-e.com

Global-E Online is an e-commerce company that provides cross-border e-commerce solutions. It belongs to the internet retail industry and is operating at full speed this festive season. This is clearly evident in the performance of its shares in the past 3 months. While the S&P 500 rose by a respectable 4%, Global-E Online's share price rose an eye-popping 43.9%! Yes, its share performance had thrashed the S&P 500's by more than 10x! But this excites me more - the opportunity to buy its shares for an explosive swing trade is near. Which price area am I waiting for? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Global-E Online (GLBE)

With several pointers to examine, I like to start by identifying the stock's price trend. Can you tell that the share price of Global-E Online is in a powerful uptrend? Following the trend increases your chances of profiting from the stock market. Hence, you'll want to be looking out for a buying opportunity. When you're selecting a stock to buy, you'll want it to perform much better than the stock market (i.e. the S&P 500). So, let's refer to the comparison chart above. In the past 3 months, the S&P 500 had risen by 4%. That's normal. What about the share price of Global-E Online? In the same 3-month period, its shares soared an eye-popping 43.9%! Your eyes aren't playing tricks on you. Global-E Online's share performance eclipsed that of the S&P 500 by more than 10x! Such a shattering performance deserves further analysis.

How Explosive Is Global-E Online (GLBE)?

Guess the number of explosive upmoves Global-E Online's shares have made in the past 12 months. 20 explosive upmoves had occurred in the past year, with the largest measuring 44.4%! That was also the most recent upmove. For a company with a market capitalization of $9b, displaying upmoves measuring between 4.8% and 44.4% is highly impressive. In addition, its market capitalization makes its shares less susceptible to manipulation. Armed with this discovery, I'm excited to buy its shares for an explosive swing trade. However, there's 1 more analysis to perform.

Key Price Levels

This last analysis will help me know whether it is time to buy its shares here. So, let's uncover the key price level (aka support and resistance) of Global-E Online's shares. I've marked out its support area at around $52 to save you time. Because it still has some way to go before reaching around $52, its share price could continue to pull back in the coming days before rising. So, I'll wait for this to happen before buying its shares for an explosive swing trade. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. 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.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!