Follow the “smart money.”

We’ve all heard the saying.

It basically means you can stack the odds in your favor by doing what the world’s best traders are doing.

There are obviously many ways to do this…

Which brings me to my latest Trade of the Week: Coupang (CPNG).

Coupang is a $40 billion South Korean online retailer. It’s a clear leader within its industry, as evidenced by the company’s strong sales and earnings growth.

So much so that it’s attracted the attention of the world’s greatest trader, Stanley Druckenmiller.

According to the latest 13F filing for Duquesne Family Office (the hedge fund managed by Druckenmiller), Coupang is currently Druck’s second-largest holding.

That alone will get my attention. But let me make something clear…

You should never follow another investor blindly into a trade, not even Druckenmiller. The stock should still have a good-looking setup.

That’s the case here. You can see what I mean below. CPNG is in the early stages of climbing out of a two-year base:

Source: StockCharts (click to enlarge)

That’s why I suggest picking up shares in CPNG today. I believe the stock could hit $32 over the next 12–18 months.

Exit your position if CPNG closes below $20. That gives us a risk-reward ratio of more than 4:1 on this trade.

Action to take: Buy CPNG at current market prices.

Risk management: Exit your position if CPNG closes below $20.

Justin Spittler
Chief Trader, RiskHedge