Right now, fearful headline risks persist. But when it comes to stocks to trade, it’s time to get on board with two new emerging bull markets and one greedy stock to short, whose forceful and trendy ways are long in the tooth.
The Russian invasion of Ukraine. Inflation. The novel coronavirus pandemic. They’re the ongoing and unwanted macro trifecta hanging over the stock market. Or rather, they were.
While each narrative has continued with helping put together bleak nightly news reports, a forward-looking Wall Street is seeing things a bit differently these days. And you don’t have to look any further than Apple (NASDAQ:AAPL) for a different and more bullish perspective.
The world’s largest company has gained nearly 12% over the past week, and is trading within 3.5% of its all-time-high. Does that sound like a stock to trade short or a bear to stress over?
But AAPL stock isn’t alone these days either.
Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B). Costco (NASDAQ:COST). American International Group (NYSE:AIG). Ulta Beauty (NASDAQ:ULTA). The list goes on and on and it’s likely to grow even larger for stocks to trade long over the coming months.
Driving this bullish turn of events, this past week the broader averages signaled a critical follow-through day (FTD).
Research from Investor’s Business Daily notes that no market has made a successful transition from a bearish corrective phase to a bullish cycle without the follow-through day’s key time, volume and price characteristics in place.
Thus, as AAPL stock and many other stocks to trade are revealing, a FTD isn’t to be messed with. Well, mostly.
Respectfully, there’s a bias to trade long right now. And here we have two stocks to trade whose monthly charts insist the dawn of a new bullish cycle is underway. Sensibly, and in a market made up of stocks, we’ve also unearthed a shorting opportunity in a more mature bull likely poised for extinction.
Now, let’s dive in and take a closer look at each one.
Stocks to Trade: Block, Inc. (SQ)
The first of our stocks to trade is Block, and with SQ stock it’s super easy to see why. If there’s always a bull market somewhere that’s ripe for buying, it pays to look down first.
Block was recently in one of the more severe bear markets within the super large-cap arena. In fact, shares tumbled as much as 71% from their August peak this past month. But a late February earnings report marked the grand finale of the bear’s reign.
Now, though, and with the broader market at its back, investors can buy this profitable growth story at a historically cheap price-sales (P/S) multiple of 3.85.
What’s more and right now, this stock to trade can be bought right around February’s hammer candlestick confirmation price of $131.95.
Backed by lifetime Fibonacci and trend line support and stochastics bullishly crossing over in oversold territory, it’s easy to see why this stock to trade makes a great buy on and off the price chart.
CRISPR Therapeutics (CRSP)
The next of our stocks to trade is CRISPR Therapeutics. And similar to SQ stock, this leading next-gen genomics stock is just beginning to pull the claws off a very vicious bear.
Technically, this stock to trade has worked its way through two full bear market cycles totaling 53% in depth over the course of 13 months.
Now, though, investors are being offered a very attractive spot to buy shares with a significant advantage.
At the moment, CRSP stock is trading back inside February’s smallish hammer candlestick after confirming the pattern as a monthly bottom. But don’t expect the modest price weakness to last.
So, coupled with an oversold and bullishly-aligned stochastics indicator, lifetime 76% retracement level, a bullish Fibonacci-based two-step pattern and trendline support, this stock to trade has the right material to produce bullish DNA and big profits for buyers now.
Stocks to Trade: Chevron (CVX)
The last of our stocks to trade is Chevron. However, unlike our other selections, CVX stock is sure to ruffle the feathers of trend followers and headline truth-seekers.
But based on what’s occurring both off and on the price chart, this is a great time to remember words made famous by Warren Buffett: “be fearful when others are greedy.”
It wasn’t that long ago — in fact, as recently as late 2020 — when much of Wall Street was reading last rites for the oil and gas industry amid a fantasy trade in renewables and clean energy. And as names Hyliion (NYSE:HYLN), QuantumScape (NYSE:QS) and others can attest, it turns out Wall Street got a wee bit ahead of itself.
In fact, and outside of Tesla (NASDAQ:TSLA), buyers looking to ride a “new” bullish wave in energy would have had an easier time making hay with Chevron as a bear market gripped shares.
Now some seventeen months later, and in particular since the fourth quarter of last year, it’s been nothing but blue skies behavior in this stock to trade.
Shares of CVX are just off record highs and have gained as much as 180% since March 2020.
Sure, now there’s war, oil shortages, uncertainty abounds and peak oil has become a talking point again. So, who would want to sell CVX stock?
Guess what, though? The bull is baked into this stock as much as the alternative energy siren song that kept Chevron in its own little, end-of-days bear market less than two years ago managed to do.
The point is, and as the extreme monthly price action that’s blasted through CVX stock’s Bollinger band and multiple Fibonacci pattern extensions insist, this stock to trade is a stock to sell or short right now.
On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.