This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Happy Chinese New Year!

The US stock market has been hugely impacted by 2 high-profile events last week. First, it was the reports of DeepSeek. More specifically, a giant leap forward in efficiency in the AI space.

Second, fresh tariffs have been imposed on Canada, China, and Mexico, sparking a trade war.

These 2 events had shed 2.8% off the S&P 500 at the point of writing. We could see the S&P 500 fall further!

Thankfully, you have a system to help you identify stocks and profit from them in bullish and bearish times.

How did the stocks shared in January perform?

Boston Scientific rose spectacularly while Expand Energy climbed a little, resulting in a tidy profit!

Now, let’s unpack these 2 stocks for February that could bring you a fat red packet.

Colgate-Palmolive (NYSE: CL)

Source: colgatepalmolive.com.sg

1. About the Company

Colgate-Palmolive began in 1806 selling starch, soap, and candles.

Over time, it has added other products to its lineup, such as perfume, shaving cream, and even pet food.

It took the company some decades before venturing into the international market.

Soon after, Colgate-Palmolive experienced huge growth through strategic acquisitions to become the ginormous company we are familiar with.

Presently, is the market favoring the company’s shares?

How can you possibly profit from its shares?

2. Position Trading (Daily)

The questions regarding whether the market is favoring the shares of Colgate-Palmolive and how you can potentially profit from its shares can be answered by looking at its price chart.

Referring to its price chart above, you can tell that the share price of Colgate-Palmolive enjoyed the favor of the market until September 2024. That’s when the market began selling its shares.

Here’s another quick way to tell without the need for indicators such as the moving average – the number of blue (solid and outlined) candles vs the number of red (solid and outlined) candles.

Since September 2024, long strings of red candles have been appearing. This tells you that Colgate-Palmolive’s share price is in a downtrend. Because following the trend of its share price will likely bring you good profits, you’ll want to look for shorting opportunities.

But, is it time to short the shares of Colgate-Palmolive?

There are 2 main indicators that can help you determine the time – the red arrow and Trend Impulse Factor.

When a red arrow above its latest candle appears, a fresh downtrend is here. That’ll provide you with an edge.

Next, you’ll want to check on the color of the bar of its Trend Impulse Factor.

If it’s dark green in color, there’s a high chance that this downtrend is sustainable, thus increasing your chances of profiting from the market.

Do you see what I see?

There’s no red arrow at the top of its latest candle yet. Therefore, you’ll want to wait for both the red arrow to appear and the Trend Impulse Factor bar to turn dark green before taking action.

And I think that the wait won’t be long.

NXP Semiconductors (NSDAQ: NXPI)

Source: nxp.com

1. About the Company

NXP Semiconductors is a relatively young company that provides semiconductor solutions.

Founded in 2006, it wasted no time in developing chip and transistors.

Barely a few years later, it launched the world’s fastest microcontrollers, industry’s first magnetometer and multimode wireless base station processors, powering many Internet of Things devices.

The company enjoyed worldwide recognition for its innovations, cementing the company as a major global player in the semiconductor industry.

With the boom of AI, is the market highly optimistic of its shares?

Should you be buying its shares for a position trade?

2. Position Trading (Daily)

Looking at its price chart, the market isn’t optimistic of NXP Semiconductors.

The presence of more red (solid and outlined) candles easily tells us that this is not a favored stock. Hence, you’ll want to be eyeing a shorting opportunity.

Without the need to draw support and resistance lines or use other technical tools, you can tell whether the time short its stock is here.

How?

You can do so by referring to these 2 main indicators – the red arrow and Trend Impulse Factor.

Here, the red arrow is missing from its latest candle.

However, the Trend Impulse Factor bar has turned dark green, suggesting that this downtrend is likely to continue for a while.

There’s no need to rush.

Acting on greed and the fear of missing (FOMO) don’t usually end up well.

I’m confident the next shorting opportunity will come later this month, so you’ll want to keep this stock in your watchlist!

Conclusion

Source: unsplash.com

The US stock market is still reeling from the shocking events over the past week. This could continue to drive the share price of many lower.

2 stocks that stand a better chance of continuing its slide have been carefully handpicked for you, hoping to help you prosper.

However, a glance at their charts tells us that the time to short the shares of Colgate-Palmolive and NXP Semiconductors for a position trade isn’t ripe.

Add them in your watchlist because a shorting opportunity should appear soon.

Trading stocks without a proper system can be highly risky. This is why TGPS was created. The indicators will help you determine if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Share your thoughts with me below!