Mid-Week Update: Setting Up the Next Big Trade in a Challenging Market
Dear Trader,
We are diligently working on the next winning trade for Money Magnet Express.
We are deploying our technical analysis and research in these unsettled markets to find the best winning trade for you that also comes with a risk-control, which is one of the cornerstones of our approach.
Challenging Markets
The stock market has become very choppy. The shortened trading day last Friday sent major stock indexes plunging albeit with junior traders and fund managers at the helm as their bosses were likely still on holiday.
Monday brought back reality to trading. The US economy continues to have plenty of positive developments. Jobs are plentiful, wages are on the rise and households are spending more, which as a large component of the economy bodes well for companies’ sales and earnings.
That reality brought a rally back for a time, only to have the rug pulled out again yesterday. The testimony on Capitol Hill by Federal Reserve Chair Jay Powell and Treasury Secretary Janet Yellen went very poorly. And stocks plunged again along with other assets in other markets.
The Fed Chair has ended the discussion that inflation is transitory. This means that the Fed and its Open Market Committee (FOMC) will need to take action soon to address inflation and not just stimulate the economy for more jobs as part of its dual mandate of low inflation and low unemployment.
As part of this, the FOMC will likely be increasing the pace of its tapering (slowed bond buying) of Treasurys and mortgage securities. And it is also likely that the Fed will be increasing the target range for Fed Funds (the rate charged by banks to lend to other banks) as well as other rates including the Discount Rate (the rate charged by the Fed to lend to member banks to borrow directly).
Then, the Treasury Secretary warned lawmakers that dire consequences would occur if the budget wasn’t passed or at least a continuing resolution (CR) to extend the current budget. But she was more dire in her warning over extending the debt ceiling.
The combination of these two administrators of the most important economic and market agencies and their comments and question-answering provided plenty of reasons for traders to dump stocks and other assets again.
Adding to the challenges is one of the variants of the virus known as Omicron. Already, parts of Europe have re-locked their economies. And with plenty of speculation and fewer facts in the mainstream, the ongoing virus mess only added to the market troubles.
Today, traders are getting back to buying. Economic data continue to support the argument that the US is expanding, not contracting. And it is in this condition that we are now working to identify the next new trade for you in Money Magnet Express.
Gain Opportunities & Safety
With all of the challenges in the markets, we want to remind you that we do have some recent successes for safe short-term gains in our stock and ETF recommendations.
Our latest call for the Invesco QQQ Trust ETF (QQQ) resulted in a quicker gain of 2.84%.
Then, Apple Inc. (AAPL) made for a nice short-term gain in just eight days amounting to 4.03%.
Barrick Gold Corporation (GOLD) was another recent winning stock play that netted a gain of 3.92% in just two days.
And rounding out some of the recent gains is DocuSign Inc. (DOCU) that gained a nice 7.93% in a mere 13 days.
These are just some of the risk-controlled winning stock trades, and we will have more of these in the coming days and weeks for you as a valued subscriber.
For now, stay tuned for our next new winning trade, which we’ll alert you to as soon as it becomes available.
Get The Full Rundown
To get the full rundown on this week’s action, be sure to check out the latest session recording on our website…
And for the latest on all of our stocks, click here.
Keep on trading,
Josh Martinez
Editor, Money Magnet Express