A Lot Changed Yesterday. THIS Man Has the Answer.

Hey There Income Hunters,


Did it feel like we were trading three separate markets yesterday?


At one point on my dashboard, the SPDR S&P 500 ETF (Ticker: SPY), Invesco QQQ Trust (Ticker: QQQ) and the iShares Russell 2000 ETF (Ticker: IWM) were completely disconnected from one another…


It was like the market was confused — and I even had cause for pause.


So, I Slacked — that’s right, SLACKED! — Option Pit CEO Mark Sebastian, who wasn’t confused at all.


Mark has a unique take on the markets, you see …


His insight into options and what to look for to get an edge — and how to turn that edge into massive profits — is a special skill.


Mark has spotted a tremendous change coming … and at 8 EST TONIGHT, he will offer you an opportunity that can revolutionize your life as a trader.


You simply need to register for this no-cost event right now!


Mark will not only explain his approach for selecting stocks, but will also personally give you THREE names he knows are about to collapse — and show you how you can take the ride down for a profit.


There is a psychological shift happening — and Mark is most certainly onto something.


I, for one, can’t wait to hear what he has to say … and I strongly recommend you join, as well!


***


Now onto another of my trading heroes — me!


I kid, I kid …


But the Power Income Portfolio is killing it this week in bonds …

And today I want to show you a trade that is the single best risk/reward strategy for this market.


TLT on Alert

I came into this week knowing it was going to be a big one for the iShares 20+ year Treasury Bond ETF (Ticker: TLT).


I have not been disappointed, and Ihave two strong options in the market …


  1. Inflation will continue to rise for the next few months, at least.

  2. TLT will continue to go lower until the Fed commits to buying as many bonds as it takes to keep them from going lower.


I mean look at this move …



I like to use the 20-day (yellow), 50-day (blue) and 200-day (red) moving average averages, and I look at each as a separate time frame — short-, medium- and long-term …


The short can be a couple of days to a couple of weeks. Medium can range from a couple of to a couple of years. Long, of course, is anything beyond that.


I put a lot of importance on how the market reacts when time frames converge because it brings multiple segments together — which makes moves away from those areas very powerful.


Inflation Protection


Now tomorrow’s consumer price index (CPI) number can — and most likely will — be a game changer.


The reason is, you have the Fed broadcasting that any higher inflation is transitory … 


Below I share a great chart that shows what we can expect from CPI in the near future. Check this out …



This chart is courtesy of Lyn Alden, who I’ve written about before. She’s a fascinating macro analyst and an expert on the monetary system and how it functions. 


I’ll break the chart down for you. Broad money supply is important to use because it includes all bank deposits and money fund deposits … 


Inflation, as measured by CPI, always begins with an increase in money supply. CPI then catches up once the new money flows through the economy.


Check out where we are in the cycle above — the next few months should bring a pretty significant increase in CPI … 


Therefore, it’s CRUCIAL to make sure you invest in assets that will keep up with inflation.


And I have the ideal stock that can do that for you …


iShares TIPs Bond ETF (Ticker: TIP)

Check out how the TIP ETF changed direction from TLT last July as inflation started rising …



That’s because the TIP is a unique bond that stands for Treasury Inflation Protection …


Every time an inflation number is released (which is monthly), the principal of the TIP is increased by the amount of CPI.


Normal bonds drop in price when inflation rises because inflation — which is a tax on income — deteriorates bond returns, which drop in price to account for it … 


Meanwhile, if you own the TIP, you can actually cheer inflation on because the TIP appreciates in price based on the increase in CPI …


Have a question about the TIP? Shoot me a comment below!


Bring It Home


The market is telling us a lot this week and you can see that institutional investors are becoming more concerned about the prospects for inflation … 


To be on the safe side, focus on sectors of the stock market like basic materials, industrials, commodities and precious metals… 


Remember: As long as you change with the macro forces, you can keep making money.


Good luck today and as always …


Live and Trade With Passion My Friends,


Griff

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