Wealthpress |
- Did You Turn Profits on a Down Week? Weekly Blitz Alerts Did.
- Inflation Spreads Like a Virus: 2 Things Predict How Stocks Will React
- Friday’s Hedge Fund Blow Up is the Biggest Buying Opportunity of 2021
- Gun Stocks are Exploding. 2 Ways to Make Steady Gains
- 5 Growth Stocks for the Record-Breaking Rally
- Modern Monetary Theory Always Works. Once.
- 1 Energy and 2 Materials Stocks on Sale After Recent Pullbacks
- Roger Scott Weekly Watchlist: Friday, June 18, 2021
| Did You Turn Profits on a Down Week? Weekly Blitz Alerts Did. Posted: 18 Jun 2021 01:16 PM PDT The week is finally over. Between the Federal Reserve meeting, inflation fears and low volume, it wasn't the best week of trading I've seen. Far from it, in fact… Toss in more volatility from the quad witching week — when futures, index options, stock options and single-stock futures all expire at the same time— and it's enough to make you want to throw up your hands, pack up your gear, go fishing and just come back next week. But we can only trade the market that's in front of us, and earlier this week I decided if all I was going to get was lemons, then I'd make some damn lemonade. And that's exactly what we did with Plug Power and this week's fuel cell sell-off. Big Options Play Ahead of Fuel Cell Sell-OffWhenever there's weak volume, the high-volume trades stand out that much more. And at the outset of the week, my Blitz Tracker picked up on aggressive put buyers in Plug Power Inc. (Nasdaq: PLUG). Puts are of course bearish plays… Shares were down 3.5% on the day as the big boys bought 2,518 of the June 25 $30-strike price puts and sold monthly June $26 calls. PLUG was breaking below its eight-day moving average amid broader market weakness, so I sent out an alert to Weekly Biltz Alerts members to take a small position in the June 25 $30 puts. Now I know a lot of people are long PLUG and, to be honest, that’s why I liked the downside play here. Because if everyone’s long the stock and fuel cells sell off, it can create that snowball effect of selling where the stock can liquidate. And that's exactly what we saw in fuel cell companies on Monday, trading down around 8% on the day. Well, it looks like the big boy traders were onto something because come Tuesday morning, General Motors Co. (NYSE: GM) announced a deal with Westinghouse Air Brake Technologies Corp. (NYSE: WAB) to develop and commercialize electric batteries and hydrogen fuel cell systems for WAB-built trains. PLUG shares dropped 5.25% that day, along with other fuel cell sell-offs, and Blitz members took profits for a 50% gain on half of the position ahead of Wednesday's Federal Reserve meeting. And with the sweet gains we made on this lemon, I'm gonna go find someone with some vodka and have a party! Check out the short video below where I break down the setup of this trade and how we used it to manage risk in a choppy market. As always, you can follow me on social media @lanceippolito on Twitter and Instagram. And don't forget to subscribe to our YouTube channel if you haven't already so you can be notified as soon as we post our next video! P.S. Most folks don't know this… but traditional investing research is becoming obsolete. That means the hours and hours spent studying stock charts and squinting at spreadsheets is a massive waste of time. Traders need a new way to level the playing field against Wall Street and its lightning-fast trading activity — without putting their entire portfolio at risk. And my Weekly Blitz Alerts can help traders do just that. Blitz is where I show everyday investors how to capture predictable profits with trades that could pay out overnight. How to collect 24-hour windfalls. The post Did You Turn Profits on a Down Week? Weekly Blitz Alerts Did. appeared first on Wealthpress.  | ||
| Inflation Spreads Like a Virus: 2 Things Predict How Stocks Will React Posted: 18 Jun 2021 12:55 PM PDT It's been one hell of a hellacious week in the market, and investors are still reeling on how to predict the random stock movement caused by obvious, rampant inflation. We saw the Federal Reserve on Wednesday say things like "we're progressing and seeing progress on inflation," and how it’s "not even thinking about thinking about raising rates.” What does that even mean? It's absolute nonsense. All the Fed is doing is tiptoeing around the giant pink elephant in the room that is inflation. Guys, I hate to break it to you but inflation is everywhere. You can feel it when you try to buy a car, a house, rent an apartment, fill up on gas and even when you try to buy chicken. But then you have the Fed saying there's not much of a chance of raising rates just yet — leaving its benchmark rate steady at 0% to .25%. And this message the Fed is putting out about inflation not running rampant in the markets has created a huge instability that is spreading throughout Wall Street… We saw the yield curve take a huge dip after Wednesday's Fed announcement, and there's been a big rotation of money flowing out of reinflation trades into growth stocks. Since every aspect of the market is reacting in such a turbulent and treacherous manner, all investors want to do is learn how to predict stock movement today so they can save themselves a headache tomorrow. And I'm looking at two things right now that can help traders predict next week’s major stock moves. How to Predict Stock Movement During Extreme InflationFirst, I like to look at the Barclays iPath Series B S&P 500 VIX Short-Term Futures ETN (BATS: VXX) chart — which is built to reflect the VIX by tracking its short-term contracts. The VIX, or volatility index, is the best-known market gauge of fear, and it offers key insight to how investors view the markets. The VXX has had huge pressure applied to it lately — making new lows in May and June — while the VIX spiked in May. And I'm starting to notice a profitable pattern beginning to emerge between the two that usually doesn't happen… You see, if the VIX continues to move the way it has been, then the VXX is about to deliver us a near 50% return trading opportunity next week. And the VIX isn't the only thing handing out clues to predict next week's stock movement… Check out our short video below to learn more about how to predict stock movement by analyzing two sections of the market. Be sure to share your thoughts in the comments section below. And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel. The post Inflation Spreads Like a Virus: 2 Things Predict How Stocks Will React appeared first on Wealthpress.  | ||
| Friday’s Hedge Fund Blow Up is the Biggest Buying Opportunity of 2021 Posted: 18 Jun 2021 12:19 PM PDT Can you smell that? Smells like fear. If you can't, maybe you can see it instead.  Source: Finviz That's the smell and sight of hedge fund laxbros getting fired in the June 2021 hedge fund blow up. When they get canned due to performance issues, their bosses sell everything they were managing — whether it's up, down or sideways. And man, have there been some performance issues this year… HFRX's Hedge Fund Index is showing an average return of 3.6% versus 11.3% for the S&P 500.  Source: HFRX, Bloomberg I'd fire my money manager too if he was that bad. So if you want to see exactly how serious Friday's downturn is for the hedge fund blow up, there's an easy way to tell… All you have to look at is the S&P 500 volatility index (also known as the VIX).  Source: Bloomberg When the VIX goes down, the market goes up. And you can see as plain as day that this blip isn't even as serious as this past month's… Which wasn't even as serious as the spikes back in February and March… Which wasn't even as serious as the January short squeeze… Which wasn't anywhere near as serious as this past November's mini-crash. Need more confirmation? No problem… How to Trade the June 2021 Hedge Fund Blow UpThere's actually another side to all of those hedge fund panic-selling trades to which we need to pay attention. You see, when a fund sells what it perceives to be "risk assets," it does so in exchange for "non-risk assets," which is little more than a fancy turn of phrase for U.S. Treasurys and cash. Well, sure enough, look at the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) Friday morning, making a new four-month high.  Source: Bloomberg Or the U.S. dollar, coming off of recent lows…  Source: Bloomberg Both of these assets have been in a bearish trend for almost a full year now, and these levels are simply lower highs within that longer trend. So the thing you want to keep in mind here is that once the dust settles — starting Monday morning… All of this "safe haven," "non-risk asset" capital will begin to be re-deployed into the market. When that happens, if you're long Treasurys and cash instead of STOCKS… Then you're going to have the worst case of FOMO anyone has ever seen. So long story short… Days like the 2021 hedge fund blowup are where you BUY THE DIP. All the best, Matt Warder P.S. Future of Wealth Head Trader Lance Ippolito just revealed how he spots trades with the potential to return upward of five times his initial investment every single month. Not only does this strategy protect his portfolio from long-term volatility, but it gives him the chance to bank massive winners in just 24 hours. We've never seen anything quite like this before. The post Friday's Hedge Fund Blow Up is the Biggest Buying Opportunity of 2021 appeared first on Wealthpress.  | ||
| Gun Stocks are Exploding. 2 Ways to Make Steady Gains Posted: 18 Jun 2021 11:33 AM PDT Something major in the firearm industry happened nearly a week ago that nobody is talking about… A federal judge ruled California's 32-year-old assault weapons ban unconstitutional, and said the state can no longer limit civilian access to weapons he considers "fairly ordinary and normal." It looks like the state of California has become a little more Second Amendment-friendly if you ask me. If the ruling is appealed, the Supreme Court, having a 6-3 conservative majority, will most likely agree with the judge's ruling. This ruling is huge for firearm manufacturers and investors targeting gun stocks — especially when California holds roughly 13% of the U.S. population, making the state a major economic force. Heck, if California were a sovereign nation, it would be the fifth largest economy in the world! That's why I'm covering a few gun stocks for us to target for steady gains that could give our portfolios a nice little boost over the next quarter or so… 2 Gun Stocks to Target for Steady GainsU.S. District Judge Roger Benitez of the Southern District of California said the guns under the state's ban weren't "extraordinary weapons lying at the outer limits of Second Amendment protection," and that the banned assault weapons "aren't bazookas or machineguns." So it only makes sense that the first gun stock to target on my list is American Outdoor Brands Inc. (Nasdaq: AOUT). AOUT is an American manufacturer of outdoor sports and recreational goods that provides hunting, fishing, camping, shooting and personal security products to rugged outdoor enthusiasts. The stock's one-year return is 100.32%… And I have a price target of $36 per share over the next 10 weeks, but that's assuming the trend in the basic Materials sector stays strong and no negative news comes out for firearm stocks during this period. I also want you to know that firearm stocks make great defensive plays during inflationary periods because their value tends to move with the rise and fall of metal prices. So make sure you check out my short video on the top gun stocks to target so you can stay ahead of this trend. And feel free to share your thoughts about these tickers or any other ones you like in the comments section below. Don’t forget to subscribe to our YouTube channel if you haven't already so you can be notified as soon as we post our next video!
P.S. Legendary trader Tom Busby just discovered something groundbreaking about the stock market… He found a little-known pattern that occurs every Tuesday at 9:30 a.m. And traders who catch onto it could find themselves in the driver's seat for the easiest four-day gains they've ever seen. Tom kept this strategy to himself for a year… But now that he's been able to prove his theory on real-money trades with gains like 90% on RIOT and 122% on MRNA, he's ready to go public with it. And retail investors stand to benefit from this strategy the most! See what he trades on Tuesdays. The post Gun Stocks are Exploding. 2 Ways to Make Steady Gains appeared first on Wealthpress.  | ||
| 5 Growth Stocks for the Record-Breaking Rally Posted: 18 Jun 2021 09:46 AM PDT If you're big into tech and growth stocks, then you know they've been sinking for months. And now it appears they're coming back to life and hitting new record highs! The Nasdaq 100, which is tracked by the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), has been moving sideways since February. We closed this past week at $341 and were just above that point by lunchtime Friday as the rally fizzled a bit heading into the weekend. But there's likely more gas in this tank…  That's a normal, healthy phase to consolidate the HUGE move up from the pandemic lows of March 2020, which you can see in the chart above. We pulled back again in March of this year before the "King Makers," big, institutional buyers, stepped in to push it higher. Now we're on the verge of breaking out to new highs for tech and growth stocks. We're seeing a similar situation happening in the small-cap Russell 2000, which is tracked by the iShares Russell 2000 ETF (NYSEArca: IWM).  We went from $95.69 at the pandemic low, all the way up to $230 before moving sideways in February to consolidate that big move. Building a base like both of these funds are doing is a strong sign because as they say, the market takes the stairs up, and the elevator down… So, Adam, what's going on? And why has the Dow been rising (before the past week, at least) while the Nasdaq and S&P 500 were moving sideways. Check out my short video and let's talk tech and growth stocks… where we're heading next… and five stocks to cash in on the new record-breaking highs! Also be sure to check your inbox each Monday for my free Alpha Intel Weekly Watchlist. I'll also send you free trade alerts pulled from my watchlist every couple of weeks just as a thank you for being a reader. And as always, please like and subscribe to our YouTube channel and podcast, "Smart Money Circle," where I interview some of the most brilliant minds in the business. You can also follow me on Twitter, and read more of my thoughts on the market at WealthPress and on Forbes, where I'm also a contributor. P.S. Take Advantage of This Market Glitch Everyone has heard all about GameStop and its sudden, meteoric rise and 4,200% returns amid a massive short squeeze earlier this year. Then came AMC more recently… But what most people probably haven’t heard is that it’s not the only stocks getting squeezed! Wall Street doesn’t want everyday traders to know about these massive moves because the big firms lose money whenever short squeezes happen. But I'm pulling the curtain back to reveal how anyone can take advantage of these trades — every single week! The post 5 Growth Stocks for the Record-Breaking Rally appeared first on Wealthpress.  | ||
| Modern Monetary Theory Always Works. Once. Posted: 18 Jun 2021 09:41 AM PDT
Dear Marin, Congrats on your book reaching No. 1 on the Wall Street Journal. It's a fantastic read. I wanted to share with you my thoughts on Modern Monetary Theory, which you nailed in your chapter. But I feel you "held back" in your analysis. You did a great job explaining economist jargon into common sense, but I think we are a lot closer to MMT than you state, and the outcome will be much worse than you anticipate. Maybe it's because you are rich and happy, you don't see the world through the lens of the Nature Boy of Finance. There's a virus sweeping across the United States… It's infecting politicians at the highest levels, completely changing how people think about the new legislation. It suggests that the federal government can spend as much money as it wants. Spending will enable the government to grow the economy to its full capacity… get rid of unemployment… eliminate all student loans… Governmental policy decisions no longer need to be bound by considerations of the national debt. So, it can create multi-trillion-dollar programs like free universal healthcare. Free college tuition. And huge green energy programs. Infrastructure budgets, no problem. It's the ultimate solution. That magical solution is called: "Modern Monetary Theory." It's the definition of a misnomer:
All told, it's more Archaic Fiscal Failure than anything. But this time it will be different, right? Yet politicians from both sides of the aisle, and economists at the highest levels, are buying in. And they're doing so without knowing what it is. Not even the people running the show could describe MMT to you.
Even people who claim to know what MMT is don't agree on the basic tenets. MMT is gaining ground fast. And it'll have profound long-term effects on the global economy. You must know what MMT is and how it's going to affect you. Otherwise, investing in the future will be little more than a crapshoot. Marin, you recently published your No. 1 Bestseller on both WSJ and Amazon — in the main overall category of all books in both fiction and nonfiction, not some obscure niche category. In The Rise of America, you broke down, in great detail and in real talk — not economist jargon — what MMT really is. I don't hesitate to recommend the book so my friends can educate themselves. Here's a basic description of the theory…
Put simply, from a politicians perspective: The status of the USD means that deficits (and debt) are not relevant to policy making by the United States government. It's a complete economic paradigm shift like we haven't seen in forty years. Marin: There Ain't No Such Thing as a Free Lunch…To understand the future of MMT, let's take a step back. You were a teacher in a past life, and as you'll recall from high school economics that there are two primary ways to control the U.S. economy:
Generally speaking, the job of keeping inflation in check and managing economic growth belongs to the Fed. In times of crisis, the Fed's first tool is interest rates. Lowering rates to zero can quickly juice the economy by providing ultra-cheap credit.  As you can see, interest rates have been in steady decline for close to 40 years. Globalization, technological progress and capital deepening amongst nations swallowed up most inflationary conditions. Bouts of economic decline were met with increased rate cutting, while times of prosperity never saw the previous cycle's high-rate watermark. In the 2007-2008 global financial crisis, the Fed's testicular fortitude was tested. In the initial wave of the crisis, the Fed cut rates to near zero. But it wasn't enough. So, what did the Fed do when it was backed into a corner? It created a shiny new "tool." This "tool" was called "Quantitative Easing," or QE for short. QE is a fancy term that refers to the Fed buying up government bonds in the open market to release cash into the economy. From September to November 2008, the Federal Reserve printed money and bought $1.3 trillion worth of assets in the open market. As you can see from the graph below, it kept buying… and buying…  Between 2008 and 2014 the Federal Reserve's balance sheet grew by $3.5 trillion. With more dollars, asset prices naturally inflated… As the American economy began to strengthen, finally, in late 2016 the Fed began to increase interest rates and in 2018 began to unwind its asset purchases. All told it unwound nearly a trillion dollars of the debt it had acquired. It should come as no surprise that the combination of rising interest rates and balance sheet sales led to periods of increased volatility. So in 2019, the Fed resumed the buying program. It hasn't stopped since. The spike in the chart above is COVID-19 — when the Fed picked up another $4 trillion in assets with printed money. And they're continuing to sweep up assets, just to keep the floor from dropping out of the market. The problem with QE is that it gets less and less effective as more dollars are printed. A phenomenon known as diminishing marginal returns. So, the Fed knew that they needed to get more creative.
Any more interest rate dropping, or quantitative easing, would just be pushing on a string. All of which sets the stage for MMT. The Rise of Fiscal Unilateralism (F.U.)We're seeing a historic handoff of power. Monetary policy as a means of economic management is completely giving way to fiscal policy. Congress is assuming comprehensive control of the business cycle and the U.S. economy. That's the core of MMT. And it's inevitable.
Here's what it looks like when compared to what's been the case for the past forty years:  Here's why F.U. policy (government spending, taxation, and wage and price controls) seems like a much more effective way of controlling the economy… It's fast. Think about how quickly you received—and spent—your stimulus check. Meanwhile Fed actions take months or years to have an effect. It's cheap. As long as the Fed keeps interest rates low, Congress can borrow at rock-bottom rates. Or — more importantly — the Fed can print money, and through a convoluted mechanism, fund any bills passed by Congress for "free." It's targeted. Congress can choose specific areas of the economy based on who needs the most help. It can create massive bills for infrastructure, or send cash directly to people and businesses, instead of the money just going to big banks. Of course, all of that spending means huge, record-breaking deficits.  Marin back. OK — that was interesting. I don't entirely agree, but that's what makes a market. But what you should be asking is: How Do You Protect Your Portfolio?Whether you see the world as I do or as the Nature Boy, you need to focus on Rule No. 1: Don't Lose Money. And Rule 2: Don't forget about Rule No. 1. Rule 3: Make Money. So, what is Marin Katusa doing? I'm increasing my exposure to tactical growth opportunities along with exposure to gold and specific commodities. For example, opportunities that capitalize on the flood of money pouring into the ESG sector.
Fortune favors the bold but smiles upon the prepared. If you want to take the next step consider becoming a subscriber to my premium research service — Katusa's Resource Opportunities. Every month you'll see how I'm positioning my portfolio for the coming Rise of America and all the windfalls I see coming in specific sectors. I hope you'll join me. It's going to be an incredible adventure. Regards, Marin The post Modern Monetary Theory Always Works. Once. appeared first on Wealthpress.  | ||
| 1 Energy and 2 Materials Stocks on Sale After Recent Pullbacks Posted: 18 Jun 2021 07:38 AM PDT The Financials, Energy, Industrials and Materials sectors have been cooling off this month. These sectors experienced too much volatility, too fast. I expect them to snap back up. I've identified three stocks that have been beaten down and could bounce back — and more in today's stock market recap. But first… Stock Market RecapIn the stock market recap, global stocks were mostly higher this morning as investors focus on the short-term Federal Reserve outlook. The Nasdaq made an all-time high Thursday after the Fed announced continued support for the economy. The bond market popped Thursday and might approach its 200-day moving average. But, ultimately, it will come back down and interest rates will rise. Wall Street has seized opportunities in a favorable environment with ultra-low interest rates. While the Fed has only mentioned the possibility of considering tapering off bond buying, investors are already preparing for the aftermath of such change. Tech stocks might climb higher for a few more days, only to pull back with a drop in the bond market. For those of you who have been following my videos the past few weeks — now may be a good time to lower exposure in tech stocks. Roger's Radar: Top 3 Pullback StocksEQT Corp. (NYSE: EQT) has pulled back to its 50-day MA after making a swing high. EQT is an integrated energy company engaging in the natural gas business. It has a one-year return of 46.15%. As everyone is aware, inflation is here. Interest rate-sensitive stocks will bounce back over the next few sessions. Energy stocks like EQT and others in the Materials, Financials and Industrials sectors will benefit from a reversal in interest rates. The second opportunity is a global specialty chemicals company. I've mentioned it before and it has a one-year return of 106.98% with exposure to lithium. The third stock I've identified is a friendly face in global steel manufacturing. In today's video, you'll learn whether tech has more upside to go… whether blue chips are prone to fall again… and the top pullback stocks heading into the weekend. P.S. Reduce Your Weekend Exposure to Zero With This Strategy Most people don't know this but every Tuesday morning before the stock market opens, Wall Street tips its hand off to a number of stocks. But the traders who catch it could lock in some serious paydays every week… I'm talking about gains like 90% on RIOT… 104% on FSLR… 122% on MRNA… 147% on FCX… 232% on ORCL… and dozens more! And it's all done by placing a simple trade every Tuesday and closing it out on Friday… Plus, it completely removes weekend risk exposure — which is critical in these volatile markets. Thanks to legendary trader Tom Busby finally breaking his silence, everyone now has the chance to grab winning trades and three-day weekends — every week! Check back each morning for Roger's Radar and the most important news and numbers in the WealthPress stock market recap. The post 1 Energy and 2 Materials Stocks on Sale After Recent Pullbacks appeared first on Wealthpress.  | ||
| Roger Scott Weekly Watchlist: Friday, June 18, 2021 Posted: 17 Jun 2021 09:59 PM PDT It's no secret that I'm primarily a systems trader. So that means I do a lot of sector analysis and believe in using back-tested, proven strategies to beat the stock market. But now I want to share that sensitive information with you… The Roger Scott Weekly Watchlist uses a proprietary stock ranking system to find the strongest stocks in the market. I use proprietary algorithms based on relative strength over multiple time frames to track the top 5 stocks. These five names are the strongest in the market. And by looking at historical data, they're likely to continue to outperform based on backtesting and alerts I've issued in my Alpha Rotation service. If you'd like to learn more about how I find new stocks to target, check out this video. I have a unique Cumulative Strength Index (CSI) scan that I run and use as a barometer for the broader market to gauge major indexes like the S&P 500 and Nasdaq 100. And when a stock gets on the upper edge of my scanner, it tends to stick. But keep in mind, the stocks on the Roger Scott Weekly Watchlist aren’t trade recommendations. They're just trade ideas, so don't enter a position if you're not comfortable managing it on your own. If you're interested in more than just pointers and ideas, you can get real trades from my Alpha Rotation service through text and email alerts, with entry and exits. Every two weeks, Alpha Rotation trades clusters of four positions with the possibilities for double-digit returns in just two weeks. And I'll even send you bonus trade alerts from time to time! Roger Scott Weekly WatchlistAnd as always, don’t forget to like and subscribe to our YouTube channel if you haven't already so you can be notified as soon as we post our next video and see what other trade opportunities we're paying close attention to!
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