3 Trade Ideas To Start The 4th Week Of March 2016 With Profits

Mar 20, 2016 | Trade Alerts and Ideas

On Friday the S&P pushed through resistance to touch 2052.36 intraday and then and closed just below it at 2049.58. The 2050 level is important for the rally and keeps alive bullish hopes that the stock markets will continue their advance.

S&P 3 Month Chart

The S&P 3 Month chart below shows the extent of the best rally stocks have seen on the S&P since October. Now up 13% and having wiped out all the losses from 2016, the S&P is just 4.1% below the all-time high of 2134.72.

200 Day Moving Average

The S&P is now above the 200 day moving average and last week the 20 day simple moving average (SMA) pushed above the 100 day moving average giving the market another UP signal. On March 9th the 20 day simple moving average (SMA) had crossed up and over the 50 day moving average which gave the signal that the 2000 level would be broken through. All of last week the S&P traded above the 200 day moving average something the index has not done since December 30.

50 Day Moving Average

By late last week, the 50 day moving average had finally started to turn back up following and may follow the 20 day moving average higher. Any movement of the 50 day back above the 100 day moving average would be a major bullish signal for a market that at the start of February seemed doomed to fall below 1800 and perhaps deeper.

SPX 3 Month Chart to March 18 2016

Challenging December Highs

The market is now within range of challenging the December highs. Whether this means that investors have seen the lows for the year or for the next several months remains to be seen as we have witnessed a number of exciting rallies since the August pullback, only to watch the market give back the gains made. This rally may at some point end up following the same path.

3 Stock Trade Ideas For Members

It is important with investing, especially for those who invest for above average income gains, to remember that no one can truly judge which direction stocks will head next. Instead it is always better to watch for profit-making opportunities that are setup in such a way that a trade has the best chance of being profitable, despite gyrations in the market.

To that end here are 3 trade ideas to start off the 4th week of March 2016 with some profits to boost final returns for the month.

For March my portfolio is up huge thanks to the rally. I know from emails being sent that most members are also doing well and many are gaining returns beyond mine. Kudos to those members who are staying with trading what we see happening and not what we think could happen. Here are 3 more trades to add to March’s spectacular gains.

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