Have you noticed this?
The S&P 500 has been struggling to break new highs in 2025. And when it drops, it drops pretty fast.
In such a volatile market environment, I’m turning more defensive.
Instead of shorting, I’ll be looking to buy defensive stocks for an explosive swing trade.
Before I share my trade idea, let’s review the previous #PowerStocks pick: IBM (IBM).
Review Of Last Week’s Pick Of The Week
IBM (IBM) was my previous stock pick.
The company is heavily involved in AI, cloud computing, financing, and consultation.
Shortly after sharing this trade idea, the share price of IBM fell to its support area of around $246 before embarking on a 2-week-long explosive rally.
I think that IBM’s shares could meet with resistance at this price area, so I’m looking to sell them soon. 
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Why Is Swing Trading Tyson Foods (TSN) Worth It?
Source: ir.tyson.com/presentations/default.aspx
Tyson Foods (TSN) is a defensive stock. It supplies beef, chicken, pork, and prepared foods to restaurants, military bases, schools, hospitals, grocery stores, and more.
While the S&P 500 struggled in 2025, Tyson Foods’ shares have enjoyed a stellar start. The S&P 500 is up by 2.3%. However, Tyson Foods’ share price has shot up by 5.2%!
Its shares have been climbing quietly in the background, bringing returns between 4% and 13.5% in each of its up moves in the recent months.
I sense a pullback happening soon, and I’m looking forward to it and buying its shares for an explosive swing trade.
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?
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Performance Of US Stock Market vs Tyson Foods (TSN)
Let’s look at the trend of Tyson Foods’ shares.
Dec 2024 was a poor month for its shares as they slid almost 15% before things turned around from mid-Jan. Since then, its share price has been on a steady uptrend.
Following the price trend, I’ll increase my chances of profiting from the stock market. Therefore, I’m looking to buy its shares for an explosive swing trade.
Although the performance of the S&P 500 is stronger than Tyson Foods’ shares performance in the last 3 months, the tide is slowly changing.
Since mid-Jan, the share performance of Tyson Foods improved significantly.
As the S&P 500’s performance remained flat, the momentum of Tyson Foods’ shares was increasing.
I’m confident its shares will continue rising hard in the near term.
How Explosive Is Tyson Foods (TSN)?
More analysis is required before I commit my hard-earned money to buy the shares of Tyson Foods for an explosive swing trade.
I’ll want to evaluate the magnitude of its upmoves to ensure that buying its shares is worth my time and money.
In the past 11 months, the shares of Tyson Foods have exploded 13 times!
It’s remarkable that the shares of Tyson Foods have the ability to explode between 4% and 13.5%, given that it enjoys a huge market capitalization of $21b!
With a huge market capitalization, I feel safer because the shares of companies with larger market caps are generally harder to manipulate.
The shares performance of Tyson Foods has got me drooling.
Should I buy them for an explosive swing trade now?
Key Price Levels
To help me decide whether the time to buy the shares of Tyson Foods is here, I’ll uncover its key price level (aka support and resistance).
This is because support and resistance are potential turning points, providing me an edge.
Did you also uncover its support zone at around $59?
Instead of rushing to buy its shares for an explosive swing trade, I’ll wait for its share price to pull back to around $59 and bounce.
Will you also wait for the scenario mentioned above to play out?
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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