What to Make of Momentum (Live at 8:45 ET)

Check Out The Show at 8:45 ET. Click Here.

Good morning:

It’s Thursday… which means we’re deep into Whale Week. Yesterday, we did a deep dive into 13Fs, Form 4 Documents, and more. Today, we’ll continue that education, focusing on the trades you can make in high-conviction environments. 

And we’ll look to put on a trade as the day continues.

Today, I want to highlight a few things around momentum. We had zero selling pressure across the market on Monday and Tuesday, typically aligning with a short-term contrarian top. We saw a sell-off yesterday. Around the world, with Asian and European markets sliding, we have to understand the ongoing challenges in the bond markets.

Today, we have much to cover… this is all about Macroeconomics and Momentum.

No matter how much you follow the global markets, even if you spend your days looking at two lines or three technicals. Here’s what’s on tap…

The Problem With Japan

To understand the global macroeconomic problems we face, one must understand Japan. For decades, the nation has offered a preview to Western nations of what happens when you overmonetize debt, engage in massive fiscal suppression, maintain weak demographics, and set yourself up for a financial implosion.

Japan’s current bond yields are exploding on the long end of the yield curve. This is very problematic, especially given America’s reliance on its insurance companies to own American debt. What comes next?

Well… this could be the source of the next major crisis… and we have to be prepared for any outcomes. Join us in 15.

Signs of an Energy Sell-Off

Yesterday, I noted that we had to keep an eye on the energy sector. The MicroSectors Oil & Gas Exploration 3X Leveraged ETF (OILU) just peaked under its 20-day moving average (the red line). As you can see, not a lot of good things have happened for the upstream energy sector when this line breaks lower.

I’ll show you the type of trade I’m taking this week to exploit any continued weakness.

In addition, I’ll show you the leveraged ETFs to watch for key sectors. Depending on their 20-day moving averages, tickers in the underlying ETFs (non-leveraged) become remarkable, one-directional trades for continued breakouts and breakdowns in sector momentum.

What’s Next for Momentum

This is a tricky environment for markets. But the good news is that any short-term weakness will set us up for the inevitable: More monetary expansion worldwide.

We’re at the point where the governments can’t turn off the money spigot. The question is how to properly manage our money, trades, and expectations in the months ahead.

I’ll walk you through the game plan…

All while giving you a preview of what to expect in our Fourth Whale Week Session.

It’s all here, and it all starts at 8:45 ET.

Click the link here, and I’ll see you in 15 minutes.

Stay positive.

Garrett Baldwin