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.
News of fresh and higher tariffs on the EU and Mexico by the US shook the US stock markets. Many stocks in the US opened lower on Monday, only to rise and recover lost ground (partially or fully).
Ever since Liberation Day, when President Donald Trump announced tariffs on virtually every country, the stock market hasn’t been largely affected by subsequent news on new tariffs.
But the following weeks could prove to be volatile as the new dates of tariff imposition is set to begin on 1 Aug.
How will businesses react?
How will consumers, with the US being a nation full of consumers, respond?
Traders and investors are on high alert.
Without a trading plan or system, it’s easy to get swayed by news and opinions.
Using our proprietary trading system, I’ve uncovered a position trading opportunity for this stock – Ventas.
Brief History of Ventas
Source: ventasreit.com
Ventas was founded in 1998 with a portfolio of healthcare properties.
Blessed with strong leadership, Ventas expanded its portfolio of properties to include senior housing communities and medical offices buildings in a challenging environment.
Soon after, the company set foot abroad, venturing into properties in Canada and the UK to become the leading healthcare REIT that it is today.
With its impressive growth in its portfolio and geographical presence, is its financials strong and healthy?
Business Model and Financials
Source: tradingview.com
Let’s look at 2 key metrics from the image above – total revenue (in blue) and net income (in purple).
Did you notice that the total revenue of Ventas grew almost every year from $3.75b in 2018 to $4.95b in 2024?
This consistent increase in its total revenue is highly welcomed in the REIT sector.
Here’s another important fundamental metric to look at – net income.
Ventas’ net income has been erratic, growing from 2018 to 2020 before sliding in 2021 and 2022, and finally picking up in 2023 and 2024.
Such erratic net income for REITs are common because they have cyclical costs such as building maintenance, upgrading works, and interest payments.
Are these strong reasons to consider buying the shares of Ventas for a position trade?
Let’s have a look at its stock chart for the answer.
Technical Analysis on Ventas (NYSE: VTR)
This is the chart of Ventas’ stock.
What’s the first thing that you can tell from it?
For me, I can tell that the bullish momentum is back. How?
By looking at the color of the candles. If the candle is blue in color (outlined or solid), coupled with the presence of a green arrow, a fresh uptrend is here.
Knowing this, you’ll want to search for a buying opportunity.
Do you need to plot support and resistance, trendlines, or slap on other indicators to help you determine the right time to buy its shares for a position trade?
Nope, you don’t have to.
All you need to do is refer to the other proprietary indicator – Trend Impulse Factor.
The Trend Impulse Factor indicator is curated to inform traders whether the move in the market is likely to be sustainable, giving you and I an edge.
When the bar of the Trend Impulse Factor indicator is dark green in color, it suggests that this bullish move is likely to be sustained. Now, let’s have a look at the color of the Trend Impulse Factor indicator’s bar.
It’s not dark green in color yet, suggesting that the time to buy its shares for a position trade isn’t ripe yet.
However, I think that it’s about to turn dark green in the coming days or so, so I’ll be watching this stock extra closely.
Conclusion
Source: unsplash.com
The US stock market is poised to face increased volatility in the near future as talks on tariffs re-emerge. The unpredictability of President Donald Trump is not a trait that the market loves.
Despite this, are there still buying opportunities for a position trade?
With the use of the scanner that comes with the TradersGPS (TGPS) system, I’ve found a gem in Ventas.
This company is solid, offers growth in its total revenue, and market participants are highly optimistic of its shares.
Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
Relying on the green arrow and the color of its Trend Impulse Factor indicator, I can tell that its shares are not ripe for a position trade for now.
However, I’ll keep this stock in my watchlist because I anticipate an entry appearing soon.
What are your thoughts?
Share your thoughts with me below!
