Over the last few days, President Biden unveiled about $5 billion in infrastructure projects.
According to CBS News, that includes “37 major infrastructure projects throughout the country across at least 12 states, with much of the funding going toward repairing and building new bridges.” It will also help fund highways, ports, and airports.
That being said, investors may want to look at infrastructure funds, such as:
iShares U.S. Infrastructure ETF (IFRA)
If you want to diversify at a low cost, there’s the iShares U.S. Infrastructure ETF (IFRA). For one, it’s technically oversold, and starting to pivot from its recent lows. Two, with a low expense ratio of 0.30%, the ETF offers exposure to companies such as US Steel, Century Aluminum, NRG Energy, CSX Corp., Olympic Steel, Enbridge, and Kinder Morgan to name a few of its 154 holdings. Better, you can own a piece of all 154 with an ETF that trades at less than $40 a share.
SPDR S&P Global Infrastructure ETF (GII)
There’s also the SPDR S&P Global Infrastructure ETF (GII) – which provides exposure to the 75 largest infrastructure-related stocks based on float-adjusted market cap and liquidity, as noted by SSGA.com. With an expense ratio of 0.40%, the ETF holds infrastructure stocks such as Duke Energy, Enbridge, NextEra Energy, Southern Company, and Transurban Group.
Of course it is impossible to have total knowledge or complete data about any given situation. There will always be noise, chaos and unpredictability which is beyond the control of anyone. No one, not even the professional traders, can have 100% certainty. Absolute knowledge in any market is impossible. However, as long as we are always prepared to obtain as much knowledge as we can, then we will have a firm foundation for all of our trading activity. It is important that you obtain the knowledge you need, and know how to recognize signals which indicate the professionals are taking their profits.
As you begin to follow the markets you will come to recognize the activity in your charts and data. In a matter of days or weeks from now, the underlying moves of the market will become obvious. The points which mark the change from one kind of market (a bull or buyers market) to another (a bear or a sellers market) will become immediately recognizable. Once confirmed by the rest of your data, you can then identify the professional sentiment, and therefore the next trend in the market.
Always remember…
If it is repeatable, then it must be predictable. If it’s predictable, then it must be tradable. If it’s tradable, then it has the potential to be profitable.
Like a film you have seen many times before, you will know the cues and the course of events so well that you can second guess what is about to happen. Instead of fighting against the professional money you will be able to trade with it!
The FOMC may be less of an event than usual. That is unless something unexpected happens or something unexpected is said. This FOMC has a press conference and as we have often seen the Market listens closely to what is said and how it is said. We will be watching along with the Market for an opportunity.
Let’s discuss what we will be watching in particular. For those of you who do not have the NFP/FOMC list memorized here it is: Here once again is our FOMC/NFP Stocks from the last two weeks: AAPL, CAT, CVX, FCX, GDX, GLD, GS, IWM, JPM, SLB, SPY, SLV, TLT, UVXY, VXX, WYNN & X. Highlighted in RED are the stocks which also show up as a result of Chris’s Assistant’s Scans.
Also, on our list of things to discuss this week is Friday’s Non-Farm Payroll Report (NFP). We look at the same list of stocks listed above for FOMC. We however tend to look at these setups on late Thursday and first thing Friday morning. Options tend to be more affordable at this time of the week as well. Like Chris says “Price is what you pay, value is what you get”. I am a budget buyer so I like NFP events as they tend to be closer to my price range.
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