The market has been all over the place this week, with the Dow screaming around like a runaway mine train.
Before we look at three stocks I think should be avoided – let’s look at the three stocks that I thought had been unfairly sold off and could have presented some trading opportunities first.
Reach
Reach’s share price is almost flat. Further downside was seen only for the stock to snap back upwards. In a week where the market tanked I see this as further evidence that this is a strong stock, and so it stays on the watchlist to trade long.
GAN plc
With GAN, the hammer identified last week was the signal for a strong surge this week with the price tagging 165p. Hammers on heavy volume are a good reversal indicator, and with the market rising on Monday GAN also saw the benefit.
Volume shows interest in the stock, as for every seller there must be a buyer, and so heavy volume hammers are candles I keep an eye out for.
Sylvania Platinum
The positive market also saw a boost for Sylvania Platinum. It’s nicely above the price published last week, almost tagging 60p.
There are many stocks that didn’t see a positive week, and so it seems (at least in this limited small sample) that my trading ideas were good ideas. It’s impossible to know what will happen next week but I’ll continue to monitor these three stocks closely.
Being able to generate ideas to trade is important, because without ideas you don’t have any trades. Sometimes thinking about the bigger picture and what it means can throw up several opportunities.
Three stocks to avoid if Coronavirus hits
Coronavirus is a tetchy topic these days. Everyone has an opinion, and people have fallen out with each other and are getting themselves increasingly bent out of shape.
What (I hope) we can agree on: Coronavirus, or Covid-19, will hit local economies globally. The significance of this is debatable. An anecdote I heard from a friend (with no vested interest in lying) is that he knows a taxi driver, who is usually fully booked with airport and cruise runs. But now he has had 30 cancellations in seven days. It has…
