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Yo Pit Crazies,
Is flight to quality a real thing?
Looking at the stock market lately, I would say yes.
Money is picking the winners and losers under what is a rapidly shifting paradigm in capital markets.
The difference now is money is buying the system, not the growth prospects.
Below is a graph of a mystery name …
Read on and I will tell you what it is and a new pick for the rest of 2022 …
The Mystery Graph Is …
The PowerShares DB US Dollar ETF (Ticker: UUP).
The Federal Reserve has talked tough for a straight week and US stocks have gone straight up.
I learned early to trade what you see and the money is moving with it.
Even news that the Russians only want rubles for oil did not dent the dollar. The dollar has been a sea of tranquility in a tumultuous time.
Right now, China is suffering from a flight of capital. The Russian invasion has made it so folks have to think twice about where their money goes.
The chart below is Brazil, or more specifically, the iShares MSCI Brazil ETF (Ticker: EWZ).
Brazil is a commodity-based economy with a relatively stable democratic government. There is corruption, yes, but Brazillians don’t go making incursions over the border, and capital is decently treated. The multiples on stocks are very low.
I said above, capital is finding the systems that look better. Not perfect, but better.
If you’re looking for commodities and oil, you could do much worse than this ETF. There has been a lot of option flow into this name over the past week, as well.
The Rundown
Capitol Gains w/ Frank Gregory
My Exxon Mobil Corp (Ticker: XOM) call calendars are closed out for 43% gain.
Option Shopper
The Shopper sipped margaritas and profits with Transocean LTD (Ticker: RIG) calls up a sunny 100%. The news on oil and gas production going to Europe is a big boon to this sector and Licia was on it.
Big Money Flow
Mark closed some British Petroleum, LLC (Ticker: BP) calls Friday for 100% partial gain. BMF is still running hot and Mark and I noticed a lot of EWZ long call paper going up this week.
Grab a 30-day Big Money Flow membership for just $149. Available through tonight only.
Pro Trading Room:
The Pro Room is Option Pit’s live access to Mark and myself during trading hours. Our Pro students post trade ideas with Mark and me during the entire trading session.
The Pro Room FridayAlgoTrade winner was …ME!
Trading Legion:
The Trading Legion is a “next step” trading education program. The goal is to teach students the best times to buy options.
My PowerShares QQQ Trust (Ticker: QQQ) calendars closed for a net 18% gain. I tried to press them on Friday, so I will need some help from my QQQ put to make real dollars.
Volatility Edge & Volatility Trading Club:
The Option Pit VIX Light Is Yellow Turning to Red as the market is gearing up for the next move.
Volatility Trading Club trade No. 286 is running up 5% with my in-the-money VIX put spreads.
Remember, a lot of vol strategies I use are market neutral. That means whether SPX or VIX go up or down, the positions still make money. This is a technique you can learn in the Volatility Trading Club and Volatility Edge!
To Your Trading Success,
AG
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