The Calm Before the Storm:
The Market Is Waiting for CPI
But those wild moves could be down.
I wouldn’t be surprised to see the VIX break below 20 today. It’s been on a downward trend since Monday morning, after all.
If we don’t break 20, however, then I know what to blame…
Consumer Price Index, which measures inflation, comes out tomorrow. It’s possible that the market is waiting for this number – because when CPI does come out, it could bring a whole new wave of volatility with it.
That’s because most investors are scared of inflation.
Tonight, my Money Morning Live co-host – ex-economist Garrett Baldwin – is hosting an inflation-trading event: The World’s Biggest Trade.
Because of Garrett’s history as an economist, he looks at inflation differently than almost every other trader I know.
And tonight, he’s sharing that opportunistic… and profitable… strategy with you.
Register for tonight’s event right here – you may even catch me there in the chat!
This Israeli Casino Company
Is Rising into Earnings
But I couldn’t ignore this 10,000-contract trade:
This big-money trader just spent $310,000 on a bet that PLTK, a $17.50 stock, will make it to $25 by May 20.
That’s a 42% jump in just over three months – and I think it’s possible.
PLTK reports earnings on March 1.
That means we can use my pre-earnings trading strategy – the same one that handed my Profit Revolution readers the chance to make 60% on BP in eight days – to piggyback this trade as its implied volatility rises into earnings.
Click here to learn exactly how I’ll put this strategy to work on pre-earnings names like PLTK.
Goodbye, ARKK – Twitter Is Ready to Rally
- Carnival C (NYSE:CCL) & Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
These two travel names are both hovering around $23. But just last week, they were in the teens.
CCL and NCLH are quietly moving higher, and they might both be running back to $25 a share.
- AMC Entertainment Holdings Inc. (NYSE:AMC)
This meme stock is another short squeeze that’s brought it 20% higher since Tuesday. But if short squeezes are famous for anything, it’s how fast they crash. And I’ll be looking for an opportunity to buy puts on AMC in the next day or two.
- Twitter Inc. (NYSE:TWTR)
After being dumped by ARKK, this social media stock has been freed – and is actually in position to rally, despite it troubles. Any earnings disappointment, in fact, may already be baked in.
I’m looking for a post-earnings trade on this name – and I’ll be watching tomorrow morning’s report very closely.
Today from 10:30-11:30 AM, I went live for the Profit Takeover show.
But remember – it’s always best to catch me LIVE if you want to get the best pricing on your trades. This market moves FAST.
And I’m live AGAIN tomorrow morning – same time, same place.
See you then,
Founder, Profit Takeover
February 09 2022