How to Cash Flow on Inflation Fears
Welcome back to the Rude Awakening for Thursday, March 18, 2021.
Essentially all of the gains the markets saw following Powell’s Fedspeak yesterday were lost this morning. Tech stocks continue to fall as Treasury yields push higher.
Looking at our technical indicators, check out the blue line here:
This is our stochastics. That light blue line tells us we are in overbought territory.
And look at that hook forming — it means this marketplace has a higher propensity to move down than up.
We will continue to watch all of this.
But today’s conditions give us some opportunities and stocks to add to the watchlist!
2 New Potential Buys
The Treasury yields, however, can give us an old school trading opportunity, using a ticker we have discussed before…
TLT is the ETF that tracks the 20-year Treasury Bond. It’s currently hitting all time lows, getting pummeled as bond yields and prices are being affected by inflation fears.
There is going to be a buy opportunity in this one.
And we have a way to cash flow on TLT and get in at a discounted price…
To find out what to do if you want to participate in this idea, and to find out about another buy opportunity stock…
Have a great rest of your trading day, folks.
We’ll talk tomorrow!
Editor, Rude Awakening