During 2017 and early 2018, we were overwhelmed and overly impressed by the returns one could generate by trading digital currencies or blockchain-oriented assets. However, once these markets went into a deep, endless hibernation mode, retail investors are returning en masse to solid, traditional forms of trading, and the stock market is the first option to consider this year.
Both NASDAQ and the S&P 500 indexes have been quite volatile these months, suggesting a lot of activity in the stock markets. This is good news for day traders as they’re often profiting during times of higher volatility. Meir Barak, a successful day trader and author of “The Market Whisperer” bestseller, is confident that now is the right time to attempt to achieve generous profits from the short-term movement of several US stocks.
Before analyzing some relevant stocks, let me get more in-depth into the introduction of Mr. Barak, who is not only trading for his own benefit but shares his know-how and day trading knowledge through Tradenet, the company that he founded in 2004. Today, Barak is regarded as a leading Wall Street analyst whose opinion is often quoted in the media. As for Tradenet, it has grown into a leading trader day training academy with international reach. It offers online courses and relevant information reviewed personally by Meir Barak, you can watch him on youtube trade live or just giving you tips in his youtube trading channel.
As Mr. Barak put it, 2019 might bring new opportunities for investors. You’d surely be interested to know what to look for in stock from a day trading perspective. Well, we distinguish three key elements that must be encountered:
- Volume – active day traders want to see the volume indicator demonstrating higher than average figures, which proves more interest from investors. Besides, a higher volume allows you to enter or exit the market with almost no slippage.
- Volatility – unlike position traders, day traders would be interested in stocks with higher volatility, especially companies that may be heavily impacted by fundamental factors like news and financial reports.
- Trend – for day traders, determining the intra-day trend should be the key, because this is what ultimately can make the difference regardless of your target.
What are 5 stocks to watch in 2019?
Based on the three key factors mentioned above, Mr. Barak picked five US stocks that are most likely to behave in a way that best fits day traders’ interest. Here are some of the companies you should follow in 2019:
Tesla (NASDAQ: TSLA) – $297.04 – Tesla might not have the best period now at around $297, but it’s still trading higher than the October 2018 low at $247.77.
The price has been under pressure this January on the news that Tesla was planning to cut about 3,000 jobs. On the other hand, the electric car maker received approval to sell its Model 3 on the European continent – a strong bullish signal for 2019. Also, Tesla is now cash positive and is producing more vehicles. This year will be rich in events, which is a good sign for both short sellers and buyers.
Apple (NASDAQ: AAPL) – $157.76 – Apple is now trading close to the lowest level since September 2017.
The first trillion dollar company in history lost a record $463 billion in market cap from October 2018, when it hit the annual peak, to the end of December 2018. Telecom equipment maker Qualcomm and Apple have been in a legal battle around patent infringements, which affected APPL’s price. Also, Apple had disappointing iPhone sales and lowered its revenue forecast for Q4. Nonetheless, the company might release three new iPhones in 2019, and this will surely move the market.
Goldman Sachs (NYSE: GS) – $200.74 – Recently, GS’s Q4 earnings and revenue figures beat the Zacks Consensus Estimate by over 23%, which pushed the stock price up. The bank’s investment management business was one of the best drivers. 2019 will be interesting also because of the Brexit intrigue.
Alibaba (NYSE: BABA) – $159.21 – Chinese e-commerce giant is struggling with the current economic uncertainty related to the trade war between China and the US. BABA is even forced to delay new hiring this year. From mid-June 2018 until this New Year, the stock lost about 38%, though it has recovered some losses in the last few weeks. The trade war-related news will keep the stock volatile for the whole year.
Netflix (NASDAQ: NFLX) – $338.05 – the beginning of 2019 was exceptional for Netflix, which has gained over 28% year-to-date. Goldman Sachs analyst Heath Terry voiced his bullish sentiment over NFLX, calling for a $400 price target for 2019.
All in all, Meir Barak advises trading the five mentioned stocks because of their higher volume and volatility. While the fundamental news should act as the background, day traders should definitely rely on the technical analysis, which is irreplaceable for intra-day trading.