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Click here to view this email in your browser. Hey Traders
Today, we have another round of trading news and information from our top analysts here at Traders Agency. And of course, our Trade of the Day. Stocks Are Conflicted: Technology stocks are having more troubles as higher bond yields and expectations for higher interest rates are causing traders to further discount the future value of their growth prospects to current stock prices. Meanwhile, energy stocks, financials, utilities consumer staples and materials stocks are getting more buyers with less concern over higher bond yields. Bond Yields Up Further: The benchmark 10-year US Treasury yield is trading at 1.78% not far from the pre-virus mess recent highs back in January 2020. And with the Federal Reserve ending bond buying soon and inflation still strong, yields should remain at elevated levels for a while. In addition, US mortgage rates are also back up to levels not seen in a while, putting the housing market in question. Commodities Mixed: Energy is taking a pause in the US with the exception of natural gas, which is up today with demand from both local consumption as well as LNG (liquefied natural gas) exports. Agricultural commodities particularly grains and soybeans are trading higher again with weather concerns impacting yield expectations. Big Data Day: The Bureau of Labor Statistics (BLS) released the big monthly jobs data. 199,000 new jobs, less than expected, but was joined by a revision of an additional 141,000 for the prior two months. The unemployment rate dropped to 3.9%, and wages gained by 4.71% while participation remained good but not great at 61.9%. This shows a robust labor market that is only limited by folks not yet wanting to join the market. To keep me up on what you’re thinking or what you want to see us cover – you can always email me directly at neilgeorge@tradersagency.com.
Now, on to our Trade of the Day… Cheniere Energy Partners, L.P.
Europe is in a natural gas mess, and it may well get worse. Europe has been largely ditching coal power, and Germany has been shutting down its nuclear plants. And while it has been sprouting more wind turbines and solar panels, the go-to source for electric power as well as winter heat continues to be natural gas.
The European Commission is even trying to pass off natural gas as a clean and global-warming friendly power source to justify its continued and rising demand for gas.
The problem is that Europe is not a big natural gas producing region. This means that the nations both inside and outside the European Union have to rely on natural gas imports. And the big primary source for natural gas is Russia.
That’s caused conflicts within Europe as well as with the US, which would like to marginalize Russia politically and economically. And that’s hindered the operations of the new gas pipeline known as Nord Stream 2, which would pipe needed gas from Russia to major European markets.
Right now, Russia is working to stabilize a divided Ukraine irking many in Europe and the US. It is also working to end the violence and instability in Kazakhstan. Both of these developments may bring further trade restrictions, including limiting natural gas exports to Europe.
This leaves the US and Qatar as primary alternative gas sources via liquefied natural gas (LNG) shipments.
LNG prices are already soaring in Europe by 303% over the past year. And in prime markets in Asia, including Japan and South Korea, LNG prices are up by 165% over the same period.
This sets up the armada of LNG ships taking on LNG from facilities in the US and heading to Europe and Asia. And with Russia being sidelined, the armada should only get bigger.
Cheniere Energy Partners, L.P. (CQP) owns and runs one of the primary US LNG terminals in the Gulf of Mexico.
I’ve presented this company before to you along with a newer company, Tellurian Inc. (TELL), which is entering this business and was founded by the same fellow that founded Cheniere. Both stocks have impressive returns over the past year.
Today, I’m focused on Cheniere, as it is operating now and cashing in on the soaring European and Asian demand for super-priced LNG exports from the US.
Revenue is soaring for Cheniere with the last quarter gaining in excess of 136%. And the ships keep coming to load more LNG.
Already, the market is prime for this company, and any further heightened sanctions against Russia will only aid it all the further and greater.
The company is set up as a passthrough, which aids its tax status as well as shields portions of its dividend distributions paid to shareholders that currently yield 6.11%.
Cheniere Energy Partners, L.P. Price -- Source: Dow Jones With the current price at $44.43, CQP is a buy under $45.15 with a near-term target of $48.55 and even more beyond that. And for safety, consider a stop at $41.81.
Now, on to the best of Traders Agency… Getting Ready to Close Out a Week of Trading
Going through some of the main facts that support my strategy is one of the greatest ways to prepare for the trading week. The risk associated with trading is the most prevalent concern I get from my students.
Anything involving money is inherently risky. That is simply a fact of life. However, because of the risk of financial loss, trading may make a lot of individuals anxious.
However, if you use the right strategy, you can mitigate the potential for loss and make sure you win more trades than you lose!
Keep reading to learn how to properly gauge and manage risk while trading the futures market. It's information critical to your success as a trader! Get Josh's Daily Direction
Recommended Link:
Protect Your Account from This Common Trading Mistake
Properly timing your trades is a critical component of a good trading strategy. We can't jump in headfirst and expect the market to go our way.
But even the best-intentioned traders can jump the gun and buy into a market too soon. When that happens, they're likely forced out of the market early before realizing any profits.
If your account can't handle a few extra days of a bearish push, you're likely over-leveraging your money. Never risk more money than you're willing to lose if a trade doesn't pay off soon enough.
Recommended Link: Here at Traders Agency we want to wish you an AMAZING 2022! So, we are offering you Ross Givens’ Stealth Trades Gold for an unbelievably low price. Normally, you can pay $197 for a year and receive all the amazing benefits of Stealth Trades… BUT right now we want to make it so easy for you to join that all you need is FIVE BUCKS! Yes, just $5 for the first month… and the rest of the year FREE! We know it sounds too good to be true… But we don't want you to miss out! Click here to see why you need to jump on this and join Stealth Trades TODAY!
Why Most Long Trades Just Aren’t Working
Breakout stocks are getting sold off before they’re able to gain any real traction.
The stocks are sound, and the setups look good. But it seems to me that institutions are selling into strength.
On Wednesday, the Nasdaq Composite fell by 3.3%...
And declining stocks outpaced advancing stocks by better than four-to-one.
Periods like this happen.
It’s all part of being a trader.
But, heads up! During conditions like these…
Most long trades are simply not going to work out. Get Stock Surge Daily
Recommended Link: BUT… will you be ready financially? Do you have enough to secure a comfortable retirement? The painful truth is if you have less than a million tucked away… that could be a serious problem. Not to despair — there is good news, and I’m excited to share with you my secrets that the bigwigs and tele-gurus won’t share with you. Click here to see how you can be ready for retirement and no longer be under the guise of what the media is telling you.
Three of My Favorite Activist Picks for 2022 Today I’ve got three special situations that we can look at to start off 2022 that I believe have the potential for big profits as we head into the new year.
First off, I want to tell you more about a closed-end fund activist arbitrage investment firm.
What this means is activists will go in and try to force a closed-end fund to do a tender offer or convert to a regular mutual fund… Pretty much whatever it takes to eliminate the discount.
Having a history of very successful runs at doing just that, this firm is currently one of my favorites...
To hear more about this firm and the tickers I'm currently watching, click here now! Get A Better Way To WealthThank you for reading Beyond The Trade! Look for much, much more every day the markets are open.
You’ll get further updates on all that is going on to make your job as a trader all the more profitable and better informed.
I’ll also continue to provide updates on the stock ideas I bring to you in Beyond The Trade.
To provide feedback, suggestions and questions, feel free to email me directly at neilgeorge@tradersagency.com.
All My Best, Neil George, Executive Editor at Traders Agency
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