«Hint: it rhymes with mobile broclown.»
Traders,
For months, the inflation trade has been humming along. Buying metal and oil stocks was an excellent play for the first four months of the year. But this month’s sudden rug-pull has the trade unwinding in a big way. Aluminum? Slammed. Copper? Destroyed. Silver? Poleaxed.
As for the sectors related to these commodities? Well, it’s ugly (see XME). To what do we owe this great horror? Slowing global GDP is undoubtedly one of the top culprits. The meteoric rise in interest rates is having the desired effect. The fact that China is shut down isn’t helping matters either. It’s the largest exporting nation and the second-largest global economy. And its zero-COVID policy is tanking its economic output. The chart below shows worldwide manufacturing PMI rolling into contraction territory.
Glass half full: this will help curb inflation and get the price stability train back on track.
Glass half empty: the hawkish Fed is driving the global economy into a ditch.
Video of the Day: Gino’s Gem: How to Trade Options After-Hours
In today’s Gino’s Gems, Coach Gino Poore teaches how to trade options After-Hours (after the Market Close).
Chart of the Day: JPMorgan/Markit Global Manufacturing PMI Output
According to Investopedia, “the Purchasing Managers’ Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors.” A reading below 50 indicates a contraction.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coaches Emily Muiruri and Gino Poore talked about Planning the trade or would like to watch it again, check it out here.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.
Trade Masters 7:00 PM EST
Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.
Trading Justice 475: Interview with Pearl Li
In this episode, we bring in Pear Li to talk about starting out in her education, struggling as a beginner, but pushing forward because of her deep why and drive to succeed.
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