What are my top stocks to watch in April 2021?

We’re entering the second quarter of the year. The biggest news in March was the huge $1.9 trillion stimulus package. That included many Americans getting direct payments of $1,400 each … and another $1,400 per dependent.

The influx of cash into the economy has many traders and investors concerned about inflation. But the Fed made repeated attempts to assure us that any rise in inflation will be short-lived.

We had more positive vaccine news with Johnson & Johnson (NYSE: JNJ) getting FDA approval for their solution. JNJ’s vaccine shot became the third approved in the U.S.

The CDC announced that the Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA) vaccines have been extremely effective in the real world. So far, reports show they’ve reduced infections by 90% percent in fully vaccinated people.

As the country draws closer to the prospect of a reopened economy, traders continue to rotate away from the tech stocks that went bonkers in 2020. Where are they going? Into cyclical energy, financial, and industrial stocks.

Crude oil prices were crazy volatile in March … And the huge container that blocked the Suez Canal — along with the stalled transport of goods and oil supplies — didn’t help.

And then there’s the star of the show — bitcoin. The cryptocurrency has been going nuts and is driving the hottest sector in the market. In March, it reached a new all-time high of $61,788.45. Currently, it’s hovering around the $58,000 level. Could it be ramping up for a new high in April?

That’s enough about March, though. Let’s get this train rolling and talk about my top 7 stocks to watch in April 2021.

Top 7 Stocks to Watch in April 2021

Cisco Systems Inc. (NASDAQ: CSCO)

CSCO is a work-from-home play. I’m sure you’ve heard of Cisco … It’s one of the most trusted names in security and networking infrastructure. It probably does it better than anybody.

With all the global cybersecurity concerns, there’s a big push to get away from Chinese-based networks. Chinese telecom giant Huawei has been accused of spying. I think Cisco stands to benefit from the allegations.

Listen — everything was already going online. But now it’s increasing more than ever. With work-from-home now our new normal and opportunities for e-education growing, there’s a lot of opportunity for CSCO. It’s grinding up and heading toward all-time highs.

Houghton Mifflin Harcourt Co. (NASDAQ: HMHC)

HMHC is another e-education play. It creates educational products and content.

I was watching this stock last year when it was under $2. Now there are acquisition rumors about it, and it keeps grinding higher. 

E-education and remote learning are part of the new reality. Even when schools become fully opened, I think remote learning and home schooling will continue to play important roles for a lot of the country.

HMHC recently broke out past multi-month resistance at the $7 mark and could push higher.

Lowe’s Companies (NYSE: LOW)

Home improvement has been hot throughout the past year. A lot of people are making upgrades to their homes.

Many aren’t commuting to work these days, so they may have more time and money to remodel their home office space. And now some people see e-education as a long-term necessity for their kids, so they’re investing in build-outs.

I’ve said it a million times in the past year or so — there’s a big building boom. In my small town, I see houses under construction and remodeling projects everywhere. Every contractor I know is booked up for months. 

And since we still have plenty of travel restrictions, many are making their homes their oasis instead of traveling.

LOW recently broke out past all-time highs and continues to grind higher.

Nucor Corp. (NYSE: NUE)

NUE deals with steel manufacturing and products, and it’s an infrastructure play. 

If Congress approves the $3 trillion infrastructure bill, I think we’ll see all sorts of crazy infrastructure plays. Steel has plenty of uses from the construction of bridges to power lines … you name it. NUE will be in that mix.

NUE is already spiking up with all the bill discussions and is already at all-time highs.

Recon Technology Ltd. (NASDAQ: RCON)

RCON deals with oil and gas. Oil and gas plays are super strong right now. But this is also an infrastructure play.

The big winter storm in Texas recently proved that the energy infrastructure in America isn’t great. In fact, a lot of the infrastructure in America hasn’t changed since the 1940s or so. The infrastructure spending bill will probably go toward improving oil and gas facilities and equipment, as well.

RCON has a few things going for it … It has a history of running and is currently in the middle of a run.

It’s also a low-priced stock with a low float of two million and a market cap of $50 million. If Recon Technology gets a significant contract from the infrastructure bill, it could be huge.

RCON just had a big breakout and is at two-year highs.

Target Corp. (NYSE: TGT)

It’s no secret that e-commerce exploded in the past year. It may not be good for small businesses … But right or wrong, people get addicted to convenience. And that addiction won’t end. 

I’ve talked about how once my wife bought some dog food from Chewy, Inc. (NYSE: CHWY), she just won’t go back to the store. They made it so easy for her that unless they screw something up majorly, she’s likely a customer for life.

I think a lot of people will feel the same about shopping at Target and other big box stores.

United States Steel Corp. (NYSE: X)

X is another steel company and on my list for the same reason as NUE. It’s an infrastructure play that could potentially benefit if the $3 trillion infrastructure bill passes.

X is grinding up and is looking to break out past two-year highs.

Well, that’s it — my top 7 stocks to watch in April 2021.

Remember, this is just a watchlist that shows stocks with the potential to move. You still have to look for your setups and only enter a trade after you create a trading plan. 

Sign up for my no-cost weekly watchlists to get my top watch picks in your inbox every Sunday. It can help you learn the process of building your great list of stocks to potentially trade.

For the rest of this article, I’ll teach you how to build your own watchlists so you can continue your journey to becoming a smarter trader. Read on…

5 Tips on How to Pick the Top Stocks to Watch

#1: Look for Big Movers

When I start building my watchlists, I always look for big percent gainers. I want to find stocks that are already moving. 

I always harp about the benefits of getting up early. If you’re part of the SteadyTrade Team, you’ve seen how it helps me prepare for the market open. Doing research after trading hours is also helpful. Some stocks start to move after 4 p.m.

No big surprise here, but for my scanning software, I use StocksToTrade. It has a bunch of built-in scans that are specifically designed to find stocks that fit the strategies I teach.

If you’re more hands-on, you can create your own custom scans. And if you’re a newbie, don’t worry … There’s a ton of help to get you up to speed. Keep an eye on this blog and follow StocksToTrade on YouTube. We post fresh content all the time.

And of course, there’s the SteadyTrade podcast. Traders of all levels can learn something here, and we have an awesome time every week. Tune in!

#2: Watch for Catalysts

Once I find the top moving stocks, I wanna find out why they’re moving. If there isn’t a good reason, the momentum will probably fizzle out. So you gotta find those catalysts.

Did the company announce good earnings? Did it win a new government contract? Was there a company merger?

A lot of things can move a stock. And the stronger the catalyst, the more powerful the stock movement can be.

Some sectors even have specialized news catalysts. For example, biotechs could get FDA approval for a new drug … or complete a phase of a major study. This is why you gotta do your homework.

StocksToTrade has a brand-new feature to help you catch the news that can really move stocks. Find out more about our Breaking News chat room here!

And watch this video to learn more about catalysts:

#3: Study the Charts

You gotta learn to read charts and spot patterns. And when you look for top stocks to watch, don’t just look at one time frame.

Change it up. Look at one-minute, five-minute, 15-minute, and daily charts. Each time frame can tell you a different part of the stock’s story.

Is it at all-time highs? Is it stuck in a particular range?

Look for areas of support and resistance. It’s a smart way to set your entries and exits. 

With StocksToTrade, you can use the news feature to see which catalysts caused certain moves on longer-term charts. You can then compare the movements of similar catalysts to help you make better trading decisions.

#4: Stay Away From Illiquid Stocks

Another important thing when finding the top stocks to watch is trading volume.



So you need big movers with great news catalysts … And you also need to make sure the stocks are liquid enough to trade.

Big volume ensures there are enough traders buying and selling so that you can enter and exit the trade easily. Also, the more volume the stock has, the more powerful the moves can be.

After I find the big percent gainers that have good news catalysts, I make sure there’s enough volume before I even consider trading them.

#5: Check Social Media

You wanna know what other traders are watching? Our social media search can be a good tool for that.

You can figure out what a lot of traders are thinking from their tweets and posts…

StocksToTrade makes it even easier to follow the buzz on stocks you’re watching with a built-in Twitter scanner that you can customize. Try StocksToTrade for 14 days — it’s just $7. See for yourself just how useful this little tool can be! 

Common Trading Questions

A lot of people look at the market and see money. There are definitely opportunities in trading. But you gotta learn strategies and how the market works.

So let’s tackle a few common questions now…

Is Trading Stocks Risky? 

Yes, trading is risky. There’s no such thing as a risk-free trade or investment. Ever. That’s why you have to study. 

You gotta learn patterns, rules, and strategies to make smart trading decisions. I’ve spent years working on my own education. Even when I ran my IT business, I woke up early to study. I traded at my office. I put in the work.

Now I use my experience to help SteadyTrade Team students improve.

Start with your education. Start trading with small positions. Paper trade to gain some experience.

That’s part of how you learn to manage your risk. And you gotta learn how to lose. Losing is part of the process. 

But you can lose 60% of the time and still grow your account. You have to learn to respect the risks. You gotta cut your losses. You have to make smart trades and do your research.

Are you willing to put in the time and effort to learn? Are you committed to seeing the learning process through? If so, I’d love to help. Join the SteadyTrade Team today!

Is Short Selling Really That Risky? 

No doubt, short selling is risky. It requires a lot of skill to do it right. And there are a lot of newbie traders just following “gurus” blindly and blowing up their accounts.

A lot of the big price moves we see today can be because ignorant short sellers get squeezed out of their trades…

Some traders have the discipline and experience to do it well. But it’s not a matter of shorting any penny stock that’s up. 

And you can lose more than what’s in your account if you short sell. You have to tread carefully here. Don’t believe anyone who says shorting is easy. Like any other strategy, do your homework before you try it. 

How Much Money Do I Need to Start Trading?

In reality, it doesn’t take a lot to start trading. You can even paper trade the first few months if you can’t fund an account yet.

If you’re ready to fund an account, some brokers require minimums. Check out this post for tips on choosing a broker. 

If you’re serious about trading, prepare. Give yourself a better chance for success by building your knowledge and skill level.

All the successful traders I know put in the time and work. Realize that trading isn’t easy. The market is a battlefield where you can lose real money — fast.

Want to speed up your learning curve? Join me and a community of like-minded traders with the SteadyTrade Team. You don’t have to go it alone. 

Conclusion

Your watchlist is everything when it comes to trading. So start working today to build solid watchlists. Find what works for you. Learn to adapt to any market.

These monthly top stock lists can help you understand what I see happening in the markets … But I love seeing students build up the skills to make their own and trade smarter every day.

I hope you use this list of top stocks to watch in April 2021 to help you create your own watchlists.

The best way to learn is to try. Follow the tips above — and don’t worry about being perfect. 

Do the work, make mistakes, and learn from them. If the stocks you watch don’t play out as you thought, find out why. Keep a trading journal. This can help you improve and craft better trading plans.

This list of stocks to watch is NOT a recommendation to buy … It’s a guide to help you learn how to spot those big movers and hot opportunities. That’s what we’re all about in the SteadyTrade Team community. Come join us today!

What do you think are the top stocks to watch in April 2021? Comment below, I love to hear from all my readers!