Thursday, October 14, 2021

2 Stocks to Trade Rising Consumer Prices

 
October 14, 2021
 
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The Only 2 Bank Earnings Strategies Worth Using
The stock market moved up sharply to open Monday trading before selling picked up…

We're not seeing any big warning signs to speak of from market internals.

The TRIN, or Short-Term Trading Index, has calmed down from its lower levels late this past week.

Meanwhile, the TICK, which compares the number of stocks rising to the number falling on the New York Stock Exchange, is trending lower on the 15-minute chart, but we have yet to see extreme selling or buying.

But we are seeing a ton of headlines about energy prices as supply issues pushed oil above $81 per barrel over the weekend, with a boatload of names in the sector trading higher.

This is a story that will continue to develop through the winter. Like I said this past Wednesday, traders looking to jump in should wait for flat or down days.

The week ahead also marks the start of my favorite season — earnings season — as several of the world's major banks are set to report.

But as much as I love to trade these events, I'm not a fan of playing bank earnings reports…
Here's Why
 
1 Long and 1 Short Stock to Trade the Latest Hot Inflation Data
The Consumer Price Index rose 5.4% versus the expected 5.3% on a year-over-year basis. Consumer prices are expected to move even higher as energy costs rise and supply chain bottlenecks continue.

Keep your eye on the bond market and how it responds to this inflation news. Volatility is likely to continue with Wednesday's release of the Federal Open Market Committee minutes, the Producer Price Index on Thursday and the Retail Sales Report on Friday.

I picked out a freight stock to go long on and a lithium stock to short in this market.

In this video, you'll discover why CPI data is vital right now… why the put/call ratio keeps bottoming out… how volatility is shaping trading action… an update on small- vs. large-cap momentum… and actionable long and short trades.
Get These Long and Short Stocks
 
"What a valuable lesson I am getting from you. Thanks Roger!"

Choon L.


A Bearish Divergence signifies a potential reversal into a downtrend, when prices rally to a new high while the technical indicator refuses to reach a new peak. In this situation, bulls are losing their grip on the market, prices are rising only as a result of inertia, and the bears are ready to take control again.
 
 
 
 
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