Weekly Raid #41 - SPOT shine
Happy Tuesday Everyone
Yesterday’s tape and pace of trade were quite boring, really speaks volumes as to why you should always have something else to do or a hobby to lean on during boring trading.
Let's hope today is a little less dull
News of the day
Again there is no real news of note out this morning, just a mixed bag of “who really gives a crap” releases.
The only thing worth watching is the API crude inventory out at 4:30. That is more for a high-level indicator of energy than anything else.
CL is making a steady march back toward $90, and as we have discussed several times in the past this will have some wide-reaching implications on the US economy.
There is no use continuing to run through the same thing over and over again, but it is something to keep an eye on.
So how do you protect yourself and your wealth from, what looks like, imminent inflation?
Hold some assets that appreciate with it. There are 3 main categories that this happens to:
Real Estate - Owning land/property is the best, but if you can’t or don’t want to REITS and private investment clubs help to make this more accessible to people.
Commodities - Owning the actual commodities that inflation eats against is another solid way to help offset inflation. Gold, Silver, and Platinum are the most common due to the fact they are easiest to hold and store. Lumber, oil, or any other hard energy supply would also do assuming you are comfortable holding a futures position.
TIPS - These are inflation-adjusted treasuries and offer the potential to at least match the rate of inflation. These for sure have the lowest barrier to entry and would be my recommendation for what to add to an existing portfolio.
Jumping into the good stuff, here are some tickers I am watching today:
SPOT is sitting at the top of a value area for the year. It keeps hovering around this inflection point so the odds favor a move. This would be a great candidate for a longer date straddle to play on some potential volatility.
AAPL announced that it will be selling its first “Made in India” iPhones in its India Store grand opening. It is starting to gap up premarket, but I think this is a potential catalyst for a move. Decoupling from China will take a while, but India seems like it would be a much better alternative. The economy will be one to watch in the coming years.
AMD is last up, and it is strictly as a sympathy play to the larger NVDA. I closed some NVDA puts yesterday as some opposite options flow came in to say the road may not be as smooth as I want, but I think AMD would be a better proxy anyway. Tech has the potential to have a lot of steam let out, even with the AI boom going on. AMD is trading under its 50DMA and if we break $ 100/share I think we could see the mid-80s next.
As always trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.