Red Hot Inflation

Jun 13, 2021 | How should Swing Traders look at inflation when making trade

Weekly Newsletter- Week of 6.13.2021 

Inflation Burns Hotter 

This week, all anyone could talk about was inflation, and why not? We’ve been experiencing the massive year over year jump in prices, reaching levels not seen since 2008. Even more, we’re on pace for inflation numbers to get as high as they’ve been in 25 years. For context, the Consumer Price Index (CPI) rose by 5% in May alone. We’ve seen prices increase across the board. Highlighted below, are some of the industries that have been hit the hardest: 

Used Car Prices: +10% 
Airfare: +8% 
Clothing and Apparel: +3% 
Food: +1% 

We’ve been talking extensively about CPI on our social media, make sure you check out our post that breaks down CPI and why it’s an important number to follow for investors. 

El Salvador Makes Bitcoin Legal Tender! 

Announced during the Bitcoin summit in Miami, El Salvador voted to pass a bill that will make Bitcoin legal tender in the country going forward. Additionally, their president has already noted that Bitcoin miners will have access to their country’s natural resources, which includes geothermal power. Geothermal power is a form of energy stored in the Earth. Why is it relevant to Bitcoin? There’s a growing enthusiasm that geothermal power may be used to help mine a greener, more eco-friendly, Bitcoin. This move could potentially put El Salvador on the frontline for a more environmentally friendly type of cryptocurrency. 

In an article a few weeks back, we noted the growing concerns over the environmental impacts of mining Bitcoin. Elon Musk cited environmental concerns as the main reason he would no longer accept Bitcoin as a form of payment for his flagship car. 

Weekly Swing Trades

PNRG (Prime Energy)

October 2, 2022

Entry Price:

80.62

Stop Price:

76.85

Target Price:

88.04

Time Frame:

1 Week Hold

Expecting a short-term bump after a recent OPEC+ announcement regarding the a supply constraint to oil. The constraint would result in ~1M less barrels of oil per day, which should cause a price jump. Low RSI and bouncing off our 250 day moving average, both hallmarks of a good swing trade.

DV (Doubleverify)

October 2, 2022

Entry Price:

27.75

Stop Price:

26.75

Target Price:

29.00

Time Frame:

3 Week Hold

Using our moving averages heavily on this swing trade, look for continued strength as we try to notch out a 6-8% gain. Specifically, we are taking advantage of of a recent cross over in the 50 day moving average. Last week closed down, so wait for confirmation of a reversal.

Bitcoin, Coming to a 401k Plan Near You? 

A small 401k provided known as “ForUsAll” will start offering cryptocurrency as an option in their 401k retirement plans. ForUsAll will be partnering with crypto exchange leader Coinbase, to allow its workers to invest up to 5% of their retirement into Bitcoin, Ethereum, Litecoin and other options. 

This is a very small company making huge headlines with this game changing decision. Currently, there are virtually no cryptocurrency options available for retirement accounts. This news comes as more banks are adding crypto investing to their businesses. Despite the recent volatility, crypto is still on the mind of institutions and heavy hitters (Goldman Sachs, JP Morgan, Morgan Stanley are all showing increasing involvement in the space).

Upcoming Economic Reports

Market Performance- Week of 09.25.2022

Recent Stories

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Dollar Weakness Gives Stocks a Rebound

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Bond Market Signals More Trouble to Come

Sep 04, 2022 | What is the Bond Market Telling Us About the Market? ...read more

Weekly Watchlists

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Weekly Review

Market Performance- Week of 09.25.2022

Recent Winners

SBUX (Starbucks)

SBUX (Starbucks)

Entry Price:

85.00

September 11, 2022

Price at High:

89.90

Return for Members:

5.76%

Timeline:

2 Month Hold

Strong momentum over the last few weeks. Watch for a mean reversion, but if moving averages stay consistent look for an early play to open the week.

PNRG (Prime Energy Resources)

PNRG (Prime Energy Resources)

Entry Price:

83.20

September 4, 2022

Price at High:

100.00

Return for Members:

20.19%

Timeline:

3 Week Hold

PNRG had a drawdown to historical levels of support (around the 100 day moving average). Looking to make an entry in the coming days as we also have macro tailwinds with the energy crisis in Europe.

PYPL (Paypal)

PYPL (Paypal)

Entry Price:

87.00

August 28, 2022

Price at High:

103.00

Return for Members:

18.39%

Timeline:

4 Week Hold

Playing off the dip in June, we're starting to see momentum as the 50MA is crossing over the long-term averages. Look to for momentum to continue and an early entry on Monday.

Recent Watchlist Winners

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