Sell Alert: Take 61% Profit On XLY Puts

With rising inflation, retail companies must pay higher costs for labor, merchandise, and transportation on overseas shipping containers. Also, many retail shelves have had items out of stock. That translates into disappointing sales volumes and depressed gross margins. We expect XLY to trade lower in the months ahead, but it has reached oversold levels in this stressed market environment. So, we recommend exiting this position now.

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Dan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which...

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