Momentum Is Green and Hot – Here’s How to Prepare For What Comes Wednesday
Dear Reader,
Economists warn of recession…
Interest rates are likely heading higher…
Hedge funds are the most “net-short” in the S&P 500 since September 2007.
Yet the market just keeps going higher. Momentum remains very strong ahead of four major events this week.
Don’t tap the brakes yet.
We don’t have any signal suggesting it’s time to run. But we can, and should, start to play defense around the following events.
Tomorrow, the Consumer Price Index (CPI) will arrive at 8:30 AM.
Then, on Wednesday, we’ll get an update from the Fed at 2:00 PM on another rate hike.
Come Thursday, the European Central Bank will likely raise interest rates.
And Friday, we’ll have Quad Witching…
If you’re an options trader – now should be the time to start protecting your positions. Set stops above your entry price to ensure that you’ll lock in a gain. If you’re up 100% on any position, sell half to ensure that you can’t lose any money on the position.
If you’re selling puts on stocks, set an exit back near your entry price. Things can move quickly when markets are hit by a series of events like the one starting tomorrow.
To be perfectly blunt, if you’re not preparing today… you can turn wins into losses fast.
Finally, if you’re a long-term shareholder, don’t do anything yet. In fact, maybe go enjoy the weather (well, I’m in Florida, so I’m biased) or take the rest of today day off from the market.
Tomorrow, things will kick into high gear.
I will let you know if we see any change in momentum in the coming days.
Check back here tomorrow for updates on momentum… and if we have any big switch – or a sector turns red – you’ll be the first to know.
Today’s Momentum Reading
WORLD’S BIGGEST INDICATORS
Recap: The World’s Biggest Indicator (Momentum) is Green
All 11 sectors of the S&P 500 saw strong capital inflows over the last week. That said, we have started to see some major outflows in the tech sector among large funds and big investors. They might be buying up Treasury bills right now. We’ll keep you updated. Oil is under a bit of pressure after Goldman Sachs (hahahaha!) cut its year-end price target for crude. That cut comes a week after they were touting $90 oil. Funny how that happens… isn’t it?
Shah’s Private Deal
The market we’ve been closely watching is slated to balloon at an astounding annual growth rate of close to 70% by the decade’s end. That’s a potential market size of a $1.5 trillion by 2030. Now, that’s something to keep your eyes on.
But here’s the thing, the giants we’re all familiar with – Apple (AAPL), Meta (META), Microsoft (MSFT) – may not be the ones leading the pack this time. Instead, the spotlight is shifting towards some lesser-known players. One such name has recently landed on our radar.
Our Chief Investment Strategist here at Money Map, Shah Gilani, just wrapped up a conversation with the founders of this promising company. They are all set to break into the market, and the clock is ticking. Their deal is set to close within the month.
And here’s the exciting part: with their groundbreaking technology poised to hit the market any day now, Shah is firmly convinced that early bird investors are in for a major windfall. In fact, he’s so confident that he’s putting a six-figure sum on the line.
And guess what? You could be part of this too. An opportunity to invest alongside Shah awaits. But remember, the window for this is narrowing with each passing moment.
So, don’t wait. Take a closer look at this technology before time runs out. You won’t want to miss this opportunity.
Cheers,
Garrett
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June 12 2023
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