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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 Rally & Then Slide: US stocks rallied nicely throughout the morning and into the afternoon before the market took back the gains. This perhaps is setting up a trading pattern that replaces buy-the-dip with sell-the-rally. The key thing to note is that while the market indexes are up and down, there are still plenty of companies reporting good numbers with better guidance for this year that will provide trading opportunities. Bonds Further Down in Yield: US Treasury yields dropped again today from short to longer-term maturities. The benchmark 10-year is now down to around 1.82%. This shows that bond buyers are still there and are not throwing in the towel on the bond market. Commodities Mixed: US energy markets gave back some of the recent big surging gains with crude oil, gasoline (petrol) and natural gas all down. With stocks taking some cash back at least for the early rally, it might have been pulled out of the haven of energy. Agricultural products were softer, but metals outside of gold all were positive, showing industrial demand is still there leading traders to expect more US economic growth. Data Check: US jobless claims for both initial and continuing were both up, perhaps as the post holiday market is weighing on the market for this week. Existing home sales were off by 4.6% over the past month as supply was constrained limiting sales. But the bigger news came from the Philadelphia Fed with its Business Outlook survey index that was up big, showing that the US economy is still in growth mode. 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… The Procter & Gamble Company
The stock market is unsettled. A rally can be followed up by profit taking and dips hopefully get followed up by buying.
However, the US economy is still growing and consumers are still spending. And consumers while battered by inflation are still benefiting from a robust job market and rising wages along with higher savings making for more spending over the coming months.
This means that we need to look at companies that can take advantage of economic growth and consumer spending while also remaining defensive in their businesses as well as in their stocks.
Consumer staples is the sector to focus on for these two characteristics in the market. And The Procter & Gamble Company (PG) is one of the best in the business and has been highlighted before in the Trade of the Day.
The company just reported a further rise in sales by over 6% for the last quarter and it also touted its cost controls and pricing power to keep its operating margin fat at over 23%. This comes as input goods and transportation costs are challenges that the company is overcoming.
Moreover, the company provided guidance for the year that it claims should result in continued sales growth and profitability. This is exactly what we need to know right now to buy a stock like this one.
IRI is a deep dive research company, and it just came out with its call that consumers continue to spend more and more on household cleaning and related products over the past year and sees more potential for this year as well.
This dovetails nicely into Procter & Gamble’s products as well as the company’s own forecasts for sales.
So, we have a profitable company with growth prospects and expectations for this year backed up with the credibility of its past performance. And it is in a stock sector that is defensive for downturns.
Procter & Gamble Price -- Source: Dow Jones With the current price at $163.19, PG is a buy under $164.35 with a near-term target of $168.75 and even more beyond that. And for safety, consider a stop at $155.00.
Now, on to the best of Traders Agency… Dealing with the Data of Futures Trading
If you've been following my trades, you'll know that I rely heavily on timeframe charts while making futures trading judgments.
Today, I want to teach you what indicators and setups I use when preparing my charts.
I recognize that dealing with all of the data for trading might be difficult, but properly setting up my charts is a critical part of becoming a successful trader.Without our timeline charts, we wouldn't know how or when to engage a market.
And, while it may look intimidating at first, I'm here to show you how simple it is to use my charts for any trade, regardless of your experience level. Get Josh's Daily DirectionWhy I Decided to Press My Bet in IWO
On Friday, I told you I was taking a short position in the Russell 2000 Growth ETF (IWO).
For those that may not know, the IWO is a growth-focused exchange-traded fund (ETF) that represents the two areas seeing the most underperformance right now…
Small-cap stocks and growth stocks.
I then added IWO to my Watchlist last week as a short idea, as growth stocks had come under some pretty heavy selling pressure the couple weeks before.
Many hedge funds had started selling the tech sector heavier than they had in more than 10 years.
And along with the persistent underperformance of small-cap stocks found in the Russell 2000, this made me believe we had a strong candidate for a short trade.
Coming back to today’s markets, I can honestly say that trading conditions are some of the worst I’ve ever seen. Get Stock Surge Daily
Recommended Link: To get this year started off right we want to offer a Trading Combo that has never been offered before… A full year of Josh’s War Room and a full year of Ross’s Stealth Trades for only $7.97!! Here’s the deal: You’ll get access to live weekly sessions, alerts and watchlists directly from these two expert traders for an entire YEAR… All for less than 10 bucks! That’s just skimming the surface of the value you’ll receive… Click here to see the full value and how you can join today.
Why Timeframe Charts Are So Important
It can be intimidating when you initially begin your trading career. But trading is more than just perplexing charts with unclear lines and weird indicators. Understanding how candlestick charts and timeframes work is the first step in understanding the ins and outs of futures trading.
Once you start to understand market candlesticks, how they work, and the importance of timeframe analysis, it'll be easier for you to read and interpret the charts.
Weekly Update: With Stocks Down, This is Where We're Looking to Trade
Last week, we talked about how the market looked like it might be starting to U-turn higher again.
Well, since then, the ES and the other major stock indexes have fallen further during a series of down days.
And even in today's session, buyers showed up at the opening but then faded throughout the day. Join the War Room! Getting in on the Next Big Tech Stock So far, tech stocks are getting absolutely crushed in 2022.
And, yet, one tech stock in particular has managed to catch my eye...
Every time this ticker tries to rally, news comes into the market, interest rates creep a little higher and they just get slaughtered.
The returns on the stock have just been awful over the last year and, with competitors soaring to new highs, we can see that this company appears to pretty much be stuck in a rut.
In fact, most Wall Street analysts absolutely hate the stock right now. Nobody's got it as a strong buy.
But that's just the beginning... 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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