Hey There Income Hunter,
As predicted, yesterday’s Fed meeting replicated the March event with a short-covering rally.
This one may have similar staying power as well.
All it took was a simple answer to a question on a 75 basis point hike at the June meeting …
Powell did not hesitate to say that it was not on the table – and the bulls took over.
And it was an across the board rally, with Energy and Tech leading the way. As always when Fed policy is on the move it now comes down to the data in between meetings.
The most important data will be the inflation numbers we get next week. We will get CPI on Wednesday and PPI on Thursday, and I predict the reports could be softer than expected …
That will give a nice boost to this rally and I am looking for another 2-3% out of this move before considering resetting bearish trades.
>> Join Andrew Giovinnazi and me in bi-weekly Power Gains sessions for exclusive Fed-powered trades. <<
But first …
Today, we’ll run through a couple of stocks to jump on and catch the second leg up on the rally.
Moderna Inc. (MRNA)
I have been looking for an opportunity in MRNA for a while.
I mean the stock has gotten killed and is trading at a 40% discount to fair value.
Plus, the company reported earnings yesterday and crushed it with 60% higher earnings and 44% higher revenues.
After yesterday, this stock may have a news runway ahead of it for stacking profits on the long side.
Check out the bullish chart formation on Moderna …
While MRNA is strong, the next stock may be one of the very best in the market …
Intrepid Potash, Inc. (IPI)
Potash is a potassium-rich salt mined from seabeds, used primarily in fertilizers to support crop yields. Together with its subsidiaries, IPI engages in the extraction and production of potash globally.
The Russian invasion into Ukraine has elevated IPI’s value since the US was importing 96% of its potassium fertilizer from Russia and now its importing zero.
With supply shortage disruptions now anticipated for fertilizer and fear it may cause an overall food shortage, IPI may be in an excellent position to see a boost in capacity and revenues.
The timing is right to jump on IPI
Bring It Home
Hopefully you caught the Power Gains live event yesterday. AG and I presented a great risk/reward paired trade where you were long VIX and long the Invesco QQQ Trust ETF (QQQ) call spreads looking for tech to lead the move higher post Fed.
It’s off to a very hot start – stay tuned for more there.
Live and Trade With Passion My Friend,
Griff