Collin Seow Remisier Blog

May 2024 Stock Pick Analysis: Should You be Looking to Sell These Stocks and Go Away?

Collin Seow
Publish date: Wed, 24 Apr 2024, 06:10 PM
Collin Seow
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Collin Seow (CFTe,CPM) is an experienced remisier who mentor his clients to help them to build a stock portfolio.

This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

The week started on a somber note.

It’s saddening to hear of a multi-vehicle collision resulting from a rash act, causing lives to be lost.

In Malaysia, a team of 10 on board 2 military helicopters perished from an accident in the air.

Through these tragedies, I’ve learnt to treasure my loved ones more.

Likewise, let’s learn to be more careful in the stock market. The stock market can be an unforgiving place if you don’t have a sound trading system and structure in place.

In early April, I’d sounded out that the stock market could face weakness in the near future. An opportunity to short these 2 weak stocks, Albemarie and Dentsply Sirona, emerged.

We are almost done with April, meaning that May is coming. Is it a good idea to sell (or short) the stocks I’m about to share with you in May and go away?

Let’s find out!

 

Boston Scientific (NYSE: BSX)

Boston Scientific logo

Source: bostonscientific.com/en-US/Home.html

 

1. About the Company

Founded in 1979, Boston Scientific boasts of a rich history.

The company had produced steerable catheters which were used in less-invasive procedures.

This bright start got the company going, acquiring businesses and constantly being on the look out for growth opportunities.

All good things must come to an end eventually (at least for a moment), and Boston Scientific is no exception.

It went through a dark period before becoming the giant in the medical field it is today.

Is there a buying or shorting opportunity?

 

2. Position Trading (Daily)

Chart of Boston Scientific

In just 1 minute, you can tell the step you’ll want to take on its shares.

To help you understand better, I shall explain.

The first thing you’ll want to note is the trend of its share price.

With more blue (outlined and solid) candles present, you can easily tell that the share price of Boston Scientific is in an uptrend.

So, you’ll want to be looking for buying opportunities for a position trade.

Next, look for a green arrow under the latest candle. The presence of a green arrow indicates the beginning of an uptrend.

Here’s the last step: Note the color of the bar of its Trend Impulse Factor indicator.

You’ll want its bar to be in dark green which suggests that this uptrend is more likely to be sustainable.

With the presence of both indicators, you can be a lot more assured that this trade could go your way.

Since the bar of its Trend Impulse Factor indicator is yet to turn dark green, you’ll want to keep this stock in your watchlist. I feel Boston Scientific’s shares will be ripe for a position trade sometime in May.

 

Capital One Financial (NYSE: COF)

Capital One Financial logo

Source: investor.capitalone.com/static-files/4d922489-2d0d-4dfb-900a-1ecfbc8e93d5

 

1. About the Company

Capital One Financial was formed in 1994.

Shortly after, the company expanded to Canada and the UK, wooing clients with teaser rates. This worked miracles – boosting its share price and helping the company go on an acquisition spree.

Capital One Financial had also gone through a tough period. The subprime crisis hit the company hard. Thankfully, Capital One Financial managed to bounce back stronger.

Should you then be looking for buying opportunities for a position trade?

 

2. Position Trading (Daily)

Chart of Capital One Financial

Using the same steps to evaluate the readiness of the shares of Boston Scientific for a position trade, what can you conclude for the shares of Capital One Financial?

Yes, the share price of Capital One Financial is in a mighty uptrend.

And its shares are ripe for a position trade!

This can be easily inferred by looking at the presence of a green arrow under its latest candle, and the color of the bar of its Trend Impulse Factor.

Did you realize that you needn’t draw any support and resistance lines which can be confusing?

 

Conclusion

Source: unsplash.com

“Sell in May and go away” doesn’t ring true for many stocks. The share price of Boston Scientific and Capital One Financial could soar in May.

A minute is all you need to spend looking at each of their charts and arriving at a conclusion.

The time to buy the shares of Boston Scientific for a position trade isn’t here yet.

However, the time to buy the shares of Capital One Financial for a position trade is ripe.

Trading stocks without a proper system can be highly risky. This is why TGPS was created. The indicators will help you determine if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Share your thoughts with me below!

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