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.

After a month of relative stability in the stock market, volatility has returned.

This is thanks to the suggestion of slapping a 50% tariff on to the European Union by President Donald Trump. Because of this, we could see increased volatility in the coming weeks.

What else is happening from next week for a month?

The mid-year school holidays!

Regardless of whether you have a mid-year trip planned, there are 2 fantastic position trading opportunities that you won’t want to miss. But before I reveal them, you may want to review the performance of the 2 stocks that were shared for May.

Done reviewing them?

Let’s analyze the 2 stocks I’ve found for you!

Fastenal (NASDAQ: FAST)

Source: investor.fastenal.com/investor-overview/default.aspx

1. About the Company

Founded in 1967, the company distributes fasteners and tools to consumers and businesses. The company also operates hardware stores and provides supply chain solutions.

It didn’t start off big. Instead, it started as a small company. Through business development and a strategic pivot, the company expanded to operate 30 hardware stores.

Eventually, the company expanded into Canada and Mexico.

Today, Fastenal is one of the largest hardware providers in the world.

Is there a position trading opportunity?

2. Position Trading (Daily)

Referring to the chart of Fastenal’s shares above, can you tell that the market loves its shares?

This can be told from its strong uptrend, which can be inferred by comparing the number of blue candles (outlined or solid) against the number of red candles (outlined or solid). 

There’s no need to add technical indicators or plot trendlines to help you. When there are more blue candles, it indicates that the stock is in an uptrend. 

Because the shares of Fastenal are in a strong uptrend, you’ll want buy its shares and enjoy profits.

But before you do, let’s take 1 minute to analyze its chart to determine whether the time to buy its shares for a position trade is ripe.

This brings me to the 2 proprietary indicators I have on my chart – the green arrow and Trend Impulse Factor.

Is there a green arrow under the latest candle of Fastenal?

There is! This tells us that this is a fresh bullish move.

Next, let’s have a look at the Trend Impulse Factor indicator.

When its bar is dark green in color, it signals that there’s momentum. With momentum present, this increases our chances of success.

Hmm. The bar hasn’t turned dark green yet.

What can you conclude about the shares of Fastenal?

The time to buy its shares for a position trade isn’t here yet. But I sense that it could come soon, so I’m adding this stock to my watchlist for June.

McKesson (NYSE: MCK)

Source: mckesson.com

1. About the Company

McKesson is a 200-year-old pharmaceutical company that was founded in 1833.

It began as a wholesaler, distributing drugs across the US. The company focused on building a top-notch supply chain, and this allowed it to expand rapidly, becoming the largest drugs distributor in the US.

Through strategic acquisitions, the company was able to provide cancer care and customizable solutions.

With its expanded services, McKesson entered Europe.

This company has gone a long way. Does it make sense to buy its shares for a position trade?

2. Position Trading (Daily)

The shares of McKesson suffered a beating last year. However, its shares quickly recovered. A beautiful uptrend began late in 2024, and has continued well till today.

Instead of adding Moving Averages or plotting trendlines, here’s one quick way to tell that the share price of McKesson is in a nice uptrend – by comparing the number of blue candles (outlined or solid) against the number of red candles (outlined or solid). 

Here, the number of blue candles (outlined or solid) outnumbers the number of red candles (outlined or solid). This tells us that this stock is in a strong uptrend. Hence, you’ll want to look for a buying opportunity to increase your chances of success. 

Are the shares of McKesson ripe for a position trade? 

Let’s find out by looking at the 2 proprietary indicators I have on my chart – the green arrow and Trend Impulse Factor. 

With the sight of the green arrow under the latest candle of McKesson, this is a fresh bullish move.

But should you rush to buy its shares?

I don’t think so.

This is because the bar of the Trend Impulse Factor indicator hasn’t turned dark green.

A dark green bar indicates that strong momentum is present, increasing your chances of success.

Conclusion

Source: unsplash.com

The US stock market had enjoyed a smooth uptrend with less volatility for a month. This was punctuated by President Donald Trump’s suggestion of a 50% tariff on the European Union. This has caused many stocks to retreat.

However, these 2 stocks remain resilient and are in a strong uptrend.

A look at the charts of Fastenal’s and McKesson’s shares revealed that both are enjoying a fresh bullish move.

The Trend Impulse Factor indicator tells us that this fresh bullish move may not be sustainable, so the time to buy their shares for a position trade isn’t here yet.

Trading stocks without a proper system can be highly risky. This is why the TradersGPS (TGPS) system 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.

I’m optimistic that an opportunity could emerge in days to come, so I’m adding them to my watchlist, and you might want to do the same!

What are your thoughts?

Share your thoughts with me below!