Deflected repeated fades dominated this Ides of March session Thursday. Several stabs tried to knock...
Time to Lock in Gains and Ready to Re-Join the Long Side
03/12/2018 3:00 pm EST
We are likely to lock-in our gains from Feb. 9 into the close on Monday, March 12 and be happy to re-join the long side if we’re wrong. More on global markets from Ziad Jasani of the Independent Investor Institute, writing and videocasting on Monday from Toronto.
View this week’s video commentary here:
The late-January to early February market correction led to a macro market-swing-low on Feb. 9 followed by a higher-low on March 2.
We have treated the bounce as a “bull-trap” for longer-term investors but our community successfully played both turn-ups profitably on a swing-trading-basis (Feb. 9 replay, March 2 replay).
This week is about inflation, inflation and inflation! Tuesday, March 13 we receive US CPI (Consumer Price Inflation) before the opening bell and on March 14 (Producer Price Inflation).
A hotter than market-expected print on CPI & PPI would push the USD and U.S. Treasury yields up, which in turn would pressure Commodities down, destabilize the Bond market and likely turn the correction-bounce around.
A weaker than market-expected print on the data would do quite the opposite. Our math indicates a higher probability for a hotter print. As such we are likely to lock-in our gains from Feb. 9 into the close on Monday, March 12 and be happy to re-join the long-side if we’re wrong.
We ended last week (March 9) with the S&P 500 E-Minis breaking out above resistance of 2,746-29 and the TSX moving into resistance of its 200-day average (15,604).
We added to our positions during the morning session on March 9 and had enough evidence to maintain them over the weekend (Watch our Weekly Workshop video).
Our focus on Monday, March 12 will be to lock in gains on the following trades: SPY, XBI, XPH, XLV, XLB, XLY, XLI, XLK, IYW, QQQ, IWM, XLE, RYE XOP, GLD, SLV, UGLD, USLV, XIC-T, HXU-T, HOU-T, HNU-T, XFN-T, ZEB-T, XEG-T, ZEO-T, EEM, FXI, EWZ, ACWX, FXC.
We are open to setting buy-limit orders on the same positions to be ready if inflation data comes in cooler than expected.
Video recorded: 11 am March 12, 2018
View the Independent Investor Institute trading ideas and strategies videos here.
Related Articles on MARKETS
Occidental Petroleum (OXY) has been a near-term disappointment, but continues to show long-term prom...
The investments world has complained for month after month about the straight up stock market that w...
Westwood Holdings Group (WHG) provides investment management services to institutional investors, pr...