Money is flowing here right now

I have my eye on a few “boring” sectors where hedge funds are big buyers…

 

Happy Friday everybody!

What an exciting earnings week!

On Monday, I said this week would be insanely volatile. My exact words were, “up or down, expect some fireworks.” 🎆

Well, we got them.

The three major tech companies, GOOGL, MSFT and META, all beat earnings.

But while GOOGL and META shot up (about 3% and 9% respectively), MSFT actually fell about 3%.

Like I keep saying, this market is priced for perfection right now. Anything less is going to lead to sell offs.

If you’ll recall, I predicted that META move almost to the penny on Monday using options pricing. I’ll teach you how to do the same in a lesson next week.

The market always knows what to expect. Buying options through earnings is a losing proposition because I don’t have an edge.

That’s why I don’t do it.

This has been an exceptionally tricky time to trade earnings also. If you look at this chart, you’ll see that stocks that have “beat” earnings are trending lower while those “missing” are trending higher.

How are you supposed to trade this? 🤷

But the real surprise was yesterday.

After gapping up at the open, the market immediately sold off heavily from its highs.

This is precisely why I wanted to sit mostly in cash this week.

Here’s how my Bullseye Trade worked out that I laid out for my members on Monday this week (before the market opened.)

🗺️ Here Was the Plan

SPY and QQQ had been running in a mad bullish sprint since mid-March, and the market’s largest companies were reporting earnings.

So, I decided to keep my trading light and look at some other sectors.

Going long in a market so oversold always makes me a bit nervous.

Remember, institutions want to make money too. When they’re up big, they’ll eventually take profits and move their money somewhere else.

We call this “sector rotation.” Right now, I am seeing money flow out of tech and into “boring” sectors like energy, utilities and transportation stocks.

I wanted something not likely to be shaken by tech earnings so I could avoid the volatility, and knowing the energy sector was seeing inflows of cash, it made the perfect selection for me this week.

Here’s what I sent to my Bullseye Trades subscribers about my plan:

ERX is a leveraged ETF.

It costs less than the energy index XLE and moves twice as much. Trading it with a call would give me “leverage on leverage.”

That’s a lot of bang for your buck. If you get the direction right, of course.

Get it wrong, and it could really bite you in the ass.

I can’t stress enough. There are no guarantees in trading. Any trade can be a loser, so always size appropriately.

Here was my exact game plan that went out to Bullseye Trades subscribers:

🕵️ Here’s What Happened

Just after the market opened, ERX roared to life. On a 5% stock move, the options I told everyone about made a very impressive move 46% higher from Monday’s alert.

Here is a chart showing how those options traded all week. Plenty of action here, and it gradually moved higher throughout the week.

I’m really not too worried. There’ll always be more trades for me.

The comments in the Alpha Room chat suggest that some subscribers got in early enough to catch the run.

Hopefully, it worked out well for them.

🚨 Critical Lessons

Money rotates from one sector to another. Keep a watchlist of sector ETFs and check it regularly.

Leveraged ETFs like ERX can provide greater returns but with more risk. Other tickers for trades like this include SPXL, TQQQ, and LABU.

The best place to learn more about market dynamics each week, and get great trading ideas is from my weekly game plan.

Don’t miss out on the next Bullseye Trade dropping Monday before the open (click here to make sure you get on the list).

What if this week’s trade is another one like the COIN alert I sent back on June 17th?

*trading is hard, results not guaranteed

When you join, you’ll start to get my complete game plan on my top idea each week, just like this one on COIN I sent to members (all before the market starts for the week, of course):

You’ll also have unlimited access to our training library, trading ebook “How to Become an Alpha Hunter,” and alerts on trades I make sent directly to your Raging Bull app.

Education, analysis, ideas and alerts. All backed by my IronClad 30-Day Satisfaction promise.

I have an incredible price on this right now – you would be foolish not to take me up on it right now!

Making you a better trader is what Bullseye Trades is all about.

To your success,

Questions or concerns about our products? Email [email protected] © Copyright 2022, RagingBull

DISCLAIMER To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer

FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision.

RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment.

RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of https:// ragingbull.com or RagingBull.com LLC are paid in whole or in part by commission based on their sales of Services to subscribers.

RagingBull.com, LLC shall be entitled to recover attorneys’ fees, costs and disbursements. In the event that any suit or action is instituted as a result of doing business with RagingBull.com, LLC and/or its affiliates or if any suit or action is necessary to enforce or interpret these Terms of Service, RagingBull.com, LLC shall be entitled to recover attorneys’ fees, costs and disbursements in addition to any other relief to which it may be entitled.

WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services except possibly by advertisers in this email. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication.