Is hindsight 20/20? Maybe, but why wait to find out? There are plenty of pandemic swing trades that make sense right now.
If you’re a StocksToTrade Pro member and you watch my webinars…
… or if you listen to the SteadyTrade podcast…
… if you follow me on Twitter or Instagram…
You’ve probably heard me say that a lot of the hottest plays right now “just make sense.”
I mean, we’ve been stuck at home during the pandemic. Plays related to working from home, food delivery, and at-home fitness have spiked. File under “duh.”
Don’t worry — even if you missed the first or second wave of potential pandemic swing trades, you still haven’t missed the boat.
Swing trades can be a way to take advantage of the market volatility that’s so rampant right now … but at a slower pace.
By the way, don’t miss the awesome NO-COST two-hour guide that my mentor and friend Tim Sykes released — “The Volatility Survival Guide.” I put in an appearance too to help you learn to better use StocksToTrade while trading through crazy volatility.
There’s no better guide to help you get up to speed on the market right now. The tips you’ll learn can help you in any volatile market in the future — marijuana stocks, crypto, whatever.
Once you get the hang of identifying these pandemic swing trades that make sense, it’s like a light turns on. You start seeing them everywhere.
Ready to make the most of pandemic trading opportunities … and segue into post-pandemic trading as the economy reopens? Let’s talk about how to get into the right mindset for finding swing trades that make sense.
Table of Contents
What’s Swing Trading?
Swing trading is a type of trading that’s less about timeline and more about riding out a specific trend.
That said, it tends to be short term. Although how short depends on the sector, the stock, and a number of other factors. A swing trade could go anywhere from an overnight hold to as long as several months.
It’s not hard to understand the appeal of day trading — it’s exciting to be in on the action and what’s in play. But it’s not for everyone.
Swing trading can be that happy medium … Some traders don’t necessarily want to watch a stock’s every tick, but they don’t want to hold positions for years either.
What’s with the name? The idea is to hold a stock — long or short — for as much time is necessary to profit from price fluctuations or “swings.”
Swing trading might not be as fast paced as day trading, but a lot of the same general rules and best practices still apply.
For instance, you’ve got to be able to identify potential trades. And you gotta know your risk tolerance, have a strong trading plan, and have the discipline to stick to your stops.
And yes, StocksToTrade is a great tool to find swing trades. There’s never been a better time to take advantage of the platform. Especially since we’ve got a new Breaking News chat room that can help you find awesome trades faster.
The chat’s run by two highly skilled stock market pros … They’re wired up to all the top news sources so you don’t have to be. They filter it down so you can get the best news leads FAST. I’ve been trading for 15+ years … There’s never been a tool like this before.
Pandemic Swing Trades That Make Sense
“Swing trades that just make sense” has practically become my catchphrase lately. But what do I actually mean?
These are the sorts of trades that make you want to slap yourself and say, “why didn’t I think of that?”
Take Chewy (NASDAQ: CHWY), for instance. I’ve got pets. Pretty much the moment the pandemic restrictions started, I started seeing these boxes on my doorstep just about every day.
Did it dawn on me that this could be a trend to swing trade? Nope. But just look at what it’s done for the past three months, while most stocks were tanking:
Chewy Inc. (NYSE: CHWY) 3-month chart (Source: StocksToTrade)
Or think about work-at-home apps and programs — the ultimate coronavirus sympathy play!
The moment that people were ordered to shelter in place, it was pretty clear pretty fast that (NASDAQ: ZM) and Slack (NYSE: WORK) gonna spike. Yep!
I’ve gotta give this disclaimer — there’s no such thing as a sure thing in the market. Even the most obvious-seeming play can surprise you at times. So it’s still SO important to do your homework. Have a solid thesis, analyze the chart, and make a strong trading plan. Got it? Good.
Let’s take a look at some of the major swing trades that have made sense so far during the pandemic. Even if the trend is fading now, you can still learn from them.
Look at them. Recognize the patterns. And start thinking about what could be the next painfully obvious play!
Blue Apron Holdings, Inc. (NYSE: APRN)
I’ve got a long, complicated history with Blue Apron. When it was an IPO, I thought it sucked. But then again, at the time I’d never even heard the term “social distancing” before.
And Blue Apron did kinda suck. As of March 16, it was trading in the low $2s. But then restaurants started closing and food shopping started getting really complicated. Guess what? The stock started to spike. Like, crazy spike.
It went up to $3.95 … $5.50 … Then on March 19, just days after it was trading in the $2s, it hit a high of $28.84.
Did that spike last? Heck no. But even so, it was — and has remained — a solid swing trade. The stock is still up significantly from its March lows. As of this writing, it’s in the $12s.
Check out the one-year chart:
Blue Apron Holdings, Inc. (NYSE: APRN) 1-year chart (Source: StocksToTrade)
Chewy, Inc. (NYSE: CHWY)
If you have pets, you probably know Chewy. If you don’t, it’s kind of like having Amazon Prime, but specifically for pet food and products.
In early March, Chewy was trading in the low $20s. In mid-March, right around when everything else totally tanked, Chewy took a small dip … but no huge drop.
As shelter-in-place orders became the norm, Chewy started a slow and steady run. If you’d thought to load up on shares back in March, you could thank Fido for giving you the idea…
Look at the six-month chart to see how it’s played out:
Chewy Inc. (NYSE: CHWY) 6-month chart (Source: StocksToTrade)
It peaked in the $40s. With recent talk of reopening, the stock’s been a little choppy, but it’s still experiencing record highs overall.
One thing to think about: even with stores reopening, the strict social distancing standards could keep people ordering things like pet food online. If so, Chewy could experience more growth. I’ll keep an eye on it…
Netflix Inc. (NASDAQ: NFLX)
The market’s been so crazy I haven’t had time to watch too many movies. But I see what’s happening in the world.
Netflix already had a huge subscriber base, but it’s become a go-to coping mechanism during the pandemic — part distraction, part therapy, part babysitter…
Before the pandemic, NFLX was trading in the high $300s. After a brief dip in mid-March, it started grinding … reaching a record high of $458.97.
Take a look at the one-year chart:
Netflix, Inc. (NASDAQ: NFLX) 1-year chart (Source: StocksToTrade)
It looks like the coronavirus really only caused a brief lull. Then the stock continued a pretty clear and steady uptrend. I know you can’t lament the past, but if you’d bought it in March when it went down to the $290s you’d be pretty happy about now!
Peloton (NASDAQ: PTON)
Peloton — my old friend! I’m a fan of the product. I watched with great amusement as fools rushed to sell after last year’s controversial commercial.
That negative catalyst was short-lived, and the pandemic has only cemented its place as a major player in the at-home workout market.
I’m an active guy, so it’s not hard for me to see why a stock like this would spike. People are stuck at home. They either want to stay fit, or they figure this is the time to dust off that old New Year’s resolution and start working out.
On March 16, when pretty much everything was in a downward spiral, PTON started the day in the $18s and ended the day at about $22. Now, it’s in the high $40s.
Check out the six-month chart:
Peloton (NASDAQ: PTON) 6-month chart (Source: StocksToTrade)
Zoom Video Communications, Inc. (NASDAQ: ZM)
Who was really surprised to see stocks like Zoom and Slack (NYSE: WORK) spike during the pandemic?
Zoom actually started spiking as early as January, when the first coronavirus mentions started hitting the news. The stock was starting to recover from a December downtrend. It started the year in the $60s and closed January in the $70s.
By March, it was in the $120s and hit a high of $181.50 in April. Even with the devastating news that Facebook was going to debut its own video conferencing program, Zoom quickly recovered.
As of this writing, it’s trading at over $200 per share. Still a pretty nice pandemic swing trade if you ask me!
Take a look at the one-year chart:
Zoom Video Communications, Inc. (NASDAQ: ZM) 1-year chart (Source: StocksToTrade)
StocksToTrade Pro
If you want to get smart about pandemic swing trades or day trading, you’ve gotta get smart, period.
StocksToTrade Pro is a great place to get a trading education and join a great trading community — all in the same spot.
Trading can be solitary — and right now, connection matters more than ever. The StocksToTrade Pro is an awesome resource, where you can learn in a supportive environment along with other up-and-coming traders.
You’ll have access to mentorship, daily webinars, chat, and so much more.
Things can click faster when you’ve got the right people around you … So sign up today!
And sign up for my FREE weekly watchlist here.
Pandemic Swing Trades: Keep it Simple, Stupid!
These swing trades are proof that sometimes, you just need to keep it simple with trading.
It doesn’t take an advanced degree to figure out why these stocks experienced steady growth during the pandemic. Sure, a few have had serious spikes … But in most cases, you had plenty of time to spot the trend and enter a swing trade at a leisurely pace.
Looking for pandemic swing trades that make sense? Stay on top of the market. Keep up with the news with STT’s Breaking News chat. And always run scans on StocksToTrade for the most up to date info on the biggest gainers!
Which stocks are on your pandemic swing trades list? Share thoughts and your pandemic trading experience in the comments below!