Why swing trades are so hot right now…

There’s an age-old debate in the stock market … “Which is the more profitable strategy, swing trading or day trading?”

Day traders open and close positions within a single trading day, aiming to capitalize on short-term price movements. They typically close all their positions before the market closes to avoid overnight risks — perfect for scalping sketchy penny stocks.

Swing traders aim to capture medium-term price movements over a few days, several weeks, or even months. This involves holding positions for more than a day, but less time than a long-term investor would.

The truth is, one isn’t necessarily better than the other. Both styles involve analyzing technical indicators, chart patterns, and market trends to identify ideal entry and exit points, while they favor different personalities, account sizes, and risk tolerances. 

A great swing trader might be terrible at day trading, and vice versa…

I swing trade and day trade, but there’s a time and place for each. 

If you want to get a better grasp on when to employ which trading strategy, join us in the Daily Income Trader System today.

Knowing when to lean into each strategy can be the difference between becoming a multi-millionaire trader and just another statistic (part of the 90% who lose money). 

And in this market, I’m seeing more juicy swing trading opportunities than I have in a long time…

Why Swing Trades Are So Hot Right Now

The market has been going straight up since November 2023…

When so many sectors are hot for so long, some traders don’t know when (or how) to enter swing trades.

They think, “I already missed the boat, now I have to wait for a dip.”

Well, that dip has come over the past month…

Geopolitical tensions in the Middle East and interest rate anxiety have caused a correction in the broader stock market, with the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) shedding almost 6% in three weeks.

But now, that fear is subsiding and the major index charts are starting to curl back up, giving us a beautiful entry point for swinging a specific red-hot sector…

3 Materials Stocks to Watch for Swing Trades

With the explosion of AI technology, chipmaking, and infrastructure — I’m getting more and more bullish on the basic materials sector.

Here are a few materials stocks that I see primed for swing trading opportunities:

Freeport Mcmoran Inc. (NYSE: FCX)

I called out FCX back in February before it ran 42%+:

@stocks2trade Bohen’s Weekly Watchlist 📈👀 – 02/04/23 Among the other stocks in his watchlist, Tim Bohen focus stock this week is $INBS! Tim Bohen shares a couple reasons as to why you should watch this stock this coming week! 📊 Full Watchlist in Bio ↖️ #stockmarket #stockmarketeducation #wealthymindset #daytrader #daytrading #stocktrader #stockstotrade #watchlist ♬ original sound – Stocks2Trade

And again in March…

Bohen’s Weekly Watchlist 👀📈 – 03/31/24

Among the other stocks in his watchlist, @tbohen’s focus stock this week is $FCX!

Tim Bohen shares a couple reasons as to why you should watch this stock this coming week!📊

Full Watchlist: https://t.co/oD2S8PhTG7 pic.twitter.com/oAL0YsYZF0

— StocksToTrade (@StocksToTrade) March 31, 2024

Now, after reaching a multi-year high of $52.42, FCX has dipped with the rest of the market, giving us a great re-entry point…

The dip-buying has already begun as FCX has been up three days in a row, but I think it has the potential to hit $52.42 (and possibly exceed it).

SPDR Gold Trust (NYSEARCA: GLD)

GLD has been an incredible swing trade in 2024, surging as much as 20% over the past two months.

That may not sound like a big % swing for the penny stocks we usually discuss in Pre-Market Prep…

…but for a precious metals fund, that’s a massive move.

After dipping 5% over the past week, gold is giving us a re-entry opportunity to swing it back to $225 (and potentially higher).

Vale SA (NYSE: VALE)

If you’ve never heard of the material cobalt, it’s time to get familiar…

Without getting too technical, chipmakers (like NVDA and AMD) are starting to use cobalt as a conductor. 

This is the first major change in the metal wiring used to power transistors in over 20 years. The last change was the adoption of copper in 1997.

And since cobalt works with thinner barriers than copper, it helps unlock the full potential of the transistors inside artificial intelligence (AI) chips. 

In other words, if AI technology continues to get widespread adoption, demand for cobalt will increase.

VALE is one of the largest cobalt miners in the world (and the chart is near long-term support in the mid-$12s).

The recent broad-market dip has given us a great opportunity to get in on some of these material swings.

And I’ll be breaking down more juicy swing trading opportunities in the Daily Income Trader System this week.

That said, don’t blindly enter any of these trades without doing your due diligence. 

Remember: There are no guarantees in the stock market.

Have a great day everyone. See you back here tomorrow. 

Tim Bohen

Lead Trainer, StocksToTrade