What the heck happened last week?
Liberation Day turned out to be Demolition Day instead, with global markets negatively impacted by the sweeping tariffs that the US has imposed on almost every country.
Bangladesh, China, Cambodia, Sri Lanka, Thailand, and Vietnam are among the worst hit. Goods imported by the US from these countries will attract a 34% to 49% tariff.
What’s the worst part?
These countries are major exporters of electronics, appliances, and apparel. They are items that require replacement every few years.
With the magnitude of this uncertainty in the US, the S&P 500 is down more than 9% in a week, making it the worst week since COVID-19 in early 2020.
With such a huge drop in many stocks, the number of suitable stocks for a swing trade has inevitably shrunk significantly.
After digging for a while, I’ve discovered this stock that has the potential to rise against the odds.
Before sharing the stock I’ve found, let’s review last week’s #PowerStocks pick: Pembina Pipeline (PBA).
Review Of Last Week’s Pick Of The Week
Pembina Pipeline (PBA) was last week’s stock pick.
It’s an oil and gas company, and its shares had been climbing while the S&P 500 was falling.
However, once the tariffs were announced on Liberation Day, its shares plunged.
Because they had plunged way below its support zone of around $39, there’s no entry.
What else will you not want to enter?
Telegram groups asking you to part with your hard-earned money for “investments”.
I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
A list of our official communication channels can be found here.
Why Is Swing Trading Ollie’s Bargain Outlet (OLLI) Worth It?
Source: investors.ollies.com
Ollie’s Bargain Outlet is a discount store that sells housewares, food, books and stationery, bed and bath, floor coverings, and more.
As the US stock market is jittery and full of fear, this is the time when most defensive stocks shine.
While the market slumped 14.6% in the last 3 months, the shares of Ollie’s Bargain Outlet soared 6.2%!
After soaring 20.8% in just 2 weeks, a pullback is here. This excites me because an excellent swing trading opportunity is emerging.
What’s the price area I’m watching?
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 Ollie’s Bargain Outlet (OLLI)
Selecting a stock to analyze and trade in the sea of 6,000 stocks in the US market can be challenging.
Questions such as “Where should I start?” and “What are the criteria to be considered?” often lead to analysis paralysis.
For me, the 1st filter I use is price trend.
Because the overall S&P 500 is still in an uptrend, I’m more inclined to search for stocks that are in an uptrend to buy for a swing trade. This will increase my chance of profitability.
From the chart above, can you tell that the shares of Ollie’s Bargain Outlet are in a strong uptrend since Mar 2025?
With its shares enjoying bullish momentum, I’m excited.
Instead of getting carried away, I’ll be comparing its performance against the S&P 500 to find out whether I stand a chance of making a potentially larger-than-market return from buying its shares.
Referring to the comparison chart above again, did you observe that the shares of Ollie’s Bargain Outlet had been performing admirably?
While the S&P 500 had dropped 14.6% in the last 3 months, Ollie’s Bargain Outlet’s shares rose 6.2% instead!
I’m marveled at such an outperformance and can’t wait to buy its shares for a swing trade.
But before I do, there’s more analysis to bring the chances of profitability to my side.
How Explosive Is Ollie’s Bargain Outlet (OLLI)?
Enjoying a market capitalization of nearly $7b, Ollie’s Bargain Outlet is no small company.
And this is assuring because its shares are less prone to market manipulation, adding a layer of security to my hard-earned money.
Can the share price of a $7b company burst upwards? Consistently?
I’ve set off to mark out its upward bursts and discovered 16 of them in the past 11 months!
Ok, its shares have proven to burst upwards consistently. What about the magnitude of its bursts?
After all, I’m looking to capture a higher-than-market return in a short amount of time.
Impressively, these bursts measure between 4.7% and 24.8%!
There’s good money to be made if I can catch its next burst upwards!
But, is it time to buy its shares for an explosive swing trade now?
Key Price Levels
It’s painful to lose money. Therefore, I don’t wish to buy a stock that’s still falling in price.
Instead, I’m always on the lookout to buy stocks that look to be beginning to rise.
How do I accomplish this?
I identify the key price levels of stocks. In this case, allow me to identify the support area of Ollie’s Bargain Outlet’s shares.
Very quickly, I’m able to spot a support zone around $109. This is the price area in which its share price is likely to fall to before heading higher.
With this revelation, I won’t want to buy its shares for an explosive swing trade now.
Instead, I will wait for its share price to fall to the area around $109 and bounce before buying the share of Ollie’s Bargain Outlet.
By doing so, I’ll be increasing my chances of success.
This approach has saved my students and I from countless heartaches.
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.
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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?
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