I know most of us were told that stocks usually go down when interest rates go up… I mean, it’s just Economics 101.
But fortunately, that’s not always true…
There’s a specific group of stocks that thrive in an economic environment like we have now, where the Federal Reserve claims it’s going to take aggressive action to raise rates several times in one year.
I’m not exactly sold on this Fed… But short-term rates have been rising the past few months…
So it’s a good idea for us to start putting stocks that trade higher when rates rise in our portfolios…
Retail sales came in much higher than expected, showing a 3.8% increase versus the consensus of 2.1% — and more in Wednesday’s stock market recap.
Remember, retail sales make up two-thirds of the U.S. economy, so this number bodes well for the market, especially the Consumer Discretionary sector.
Consumer Discretionary is once again approaching its 200-day moving average… And if it can break above that level, it should continue to rally.
Wednesday’s retail sales data doesn’t account for inflation, however, so a higher number doesn’t necessarily mean more actual sales.
In this stock market recap video, you'll also get an update on retail sales and inflationary pressure… a review of the bond market and current trends… plus a long trade and a short trade setup, both complete with options!
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
Volatility is oftentimes the most important factor to influence an option’s price over time… So understanding the difference between historical and implied volatility can go a long way to help you become a successful options trader.
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