My weekend survey of equities revealed one big theme — the whole stock market is a buy!
And no, we’re not talking about scooping up the S&P 500 or the Dow Jones Industrial Average. We’re not even talking about going for small-caps via the Russell 2000. This week’s best trades will allow us to buy up the stock market via exchange stocks. You know, the companies that own the marketplaces where traders gather to transact.
Though the charts of all three vary slightly, they are all boasting low-risk setups. Their current pattern goes by many names: bull retracement, bull pullback, swing buy. On their way to the moon, all three decided to pause for a bit last week. Sellers were allowed to exit with profits in tow while the prices of all three stocks retreated to potential support levels.
And now, it’s time for buyers to strike. A tight stop will keep the risk small, and if the uptrends persist, the rewards could be significant.
Enough with the preamble. Let’s hop to it. Here are three of the best trades to buy the whole stock market.
3 Best Trades Right Now: CME Group (CME)
Click to Enlarge
CME Group Inc (NASDAQ:CME) operates the world’s largest options and futures exchange. And it’s flashing an attractive pullback for any and all would-be buyers.
Earlier in the month, CME staged a serious breakout with robust follow-through. The surge carried shares to a marginal new 52-week high before resistance entered the scene and smacked the stock lower. CME’s retreat has taken shares close to the rising 20-day moving average which is as good a spot as any to look for support to form.
Volume patterns have also been supporting the bulls’ campaign. A score of accumulation days accompanied the breakout suggesting institutions were piling in. This increases the chances the current dip gets bought.
The Trade: Wait for CME to rise above a prior day’s high to confirm that support is forming. Then buy the stock. Consider placing a stop loss below $122.
3 Best Trades Right Now: CBOE Holdings (CBOE)
Click to Enlarge
As its namesake suggests, CBOE Holdings, Inc (NASDAQ:CBOE) owns the Chicago Board Options Exchange. It also acquired BATS Global Markets less than a year ago.
CBOE stock currently boasts one of the most consistent looking uptrends on the Street. Year-to-date the stock is up 21% scoring some serious outperformance in the process. Last week’s mild bout of profit taking dropped the stock to its rising 20-day moving average.
The Trade: The stock market is falling in Monday’s early trading, so consider for a break above Monday’s high ($89.34) before buying shares. The $88 is short-term support, so a stop loss below that for a quick trade makes sense. Otherwise, use the 50-day moving average near $85.70 if you’re looking to ride the trend.
3 Best Trades Right Now: Nasdaq (NDAQ)
Click to Enlarge
Nasdaq Inc (NASDAQ:NDAQ) shares round out today’s trio. The financial services corporation owns the Nasdaq exchange as well as eight European stock exchanges.
From a price action perspective, NDAQ is probably the sloppiest of today’s selections. But things have improved over the past month, and that’s why it’s making today’s appearance.
With the early-June surge, NDAQ was able to vault back above all its moving averages. The 20-day and 50-day are now both rising in bullish fashion. Last week’s pullback found support right at the 20-day, and the stock is attempting to rally in early morning trading today.
The Trade: Consider buying shares near $70. If you’re looking to bail at the first sign of trouble, use a break of $69.40 as your stop loss. Otherwise, use $68.75.
As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.
