FOUR interest rate hikes.
That’s the talk on the Street – and the prediction coming from institutions like Goldman Sachs.
Obviously, that’s going to have a major impact on the market, especially tech stocks and growth stocks.
Still, here’s the thing about disasters – if you see them coming, they tend not to happen. The reason we have markets is because there is such a vast quantity of information that no one person or computer can summarize it all.
If people think four interest rate hikes are on the way, that will be priced in now – and markets will react more favorably if they don’t happen.
What you need to worry about are the things that most people don’t see coming, or the dangerous assumptions that probably aren’t true.
In today’s column, Mr. X argues that there’s a bleak future ahead for those who think we will return to the pre-pandemic way of life. He argues that COVID-19 will be with us forever…
But that also means there’s still room to run for some of the pharmaceutical companies that have been grappling with this pandemic since the beginning. Now that people are focusing on treatments instead of vaccines, a whole new series of opportunities is arising…
Even though some of the names might be very familiar.
There’s always an opportunity. There’s always a way to take advantage of what’s happening. As I stress again and again, it’s about speed, liquidity, and accurate information.
And if you’re subscribed to “Before The Bell” I’ll be giving you something you can act on… every single trading day.
There’s no pandemic for us. There’s no Great Resignation. There’s just action, enthusiasm, and the thrill of the trade.
Another great episode packed full of critical information for options traders of all levels. This week Chris discusses the prediction of the Santa Rally and how the market was telling us to get ready for some time. He keys in on the power market analysis using the put-call ratio, futures, and $TICK charts to determine likely reversal points. According to Chris this is a critical time to make money as things will get more difficult as the year progresses. In his words, “making money isn’t difficult, but keeping it is.”
Click Here for Episode 53: “Options Trading – Profitable Mistakes, PC Ratio, and Following Signals”
WORD ON THE STREET
Four Rate Hikes, Elite Universities Sued, Inflation Tops Priorities
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When The Third Time Isn’t The Charm – Goldman Sachs and other analysts and institutions are expecting as many as four interest rate hikes from the Federal Reserve this year. With inflation surging (and not proving as “transitory” as the Fed once said), the central bank is looking to tamp down on easy money. Unfortunately, that also might have a massive impact on the stock market.
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Inflation Tops Polls – A new poll from the Associated Press and the NORC Center for Public Affairs shows a massive shift in Americans’ top priorities. While less than 40% of Americans say the virus should be one of the government’s top five priorities, 68% mentioned the economy. About 14% mentioned inflation specifically. This may show that Americans have essentially lost faith in the government’s ability to fight the virus… but are very concerned about whether that paper in their wallets can still buy anything.
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Universities Get Sent To Detention – An incredible 16 American universities, including top schools like Yale and Georgetown, have been sued for antitrust violations. A suit filed in federal court accuses them of collusion in order to limit the financial aid students might receive. If the suit succeeds, schools will no longer be allowed to collaborate – and they’ll have to pay damages.
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Pfizer Working On Omicron Vaccine – Pfizer and its partner BioNTech SE are working on a new vaccine that will combat the original COVID-19 strain as well as the new omicron variant. While speaking at JP Morgan, CEO Albert Bourla says a combined vaccine should be ready by March. He also said that the company is working on “higher doses” and “a lot of things right now, as we speak.” I’m not sure if that’s encouraging or terrifying.
HOT SPOTS: What’s Going on in Geopolitics
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USA/Russia Talks Begin, Fail – As Russia moves to squelch an uprising in Kazakhstan and continues its military presence on the Ukrainian border, American diplomats are trying to get the Bear to back down. Russia claims it is not planning an invasion, but the USA is still suspicious. The central conflict remains unresolved – the US State Department does not want Russia to have veto power over NATO’s “open door” policy, while Russia says Ukrainian membership in NATO is a threat to Moscow’s national security.
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Intel Bows To China – Intel made some references to the Xinjiang region of China in a letter to suppliers. Many human rights campaigners accuse the Chinese government of oppressing the Muslim population of the region. However, Chinese social media users are having none of it, slamming Intel for what was perceived as an insult to their country. Intel dutifully deleted all references to Xinjiang in its letter.
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China Locks Down THIRD City – The zero-tolerance strategy may be reaching its limits. After another COVID-19 outbreak, China has locked down the city of Anyang. This is the third city the government has locked down as it tries to stamp out the virus. About 20 million people are not allowed to leave their homes.
CUTTING EDGE: What‘s Happening In Tech
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“Don’t Be Evil?” – Google’s company motto has also become something of a dark joke these days. Now, DuckDuckGo CEO Gabriel Weinberg said Google is using “dark patterns” to manipulate search results and crush the competition. Specifically, he blames Google for adding a feature that prompts users to restore Google as their default search engine after adding the DuckDuckGo extension. Hundreds of thousands of users have been lost.
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USA Breaks Hospitalization Record – COVID-19 hospitalizations in the United States are now the highest they have ever been. They have doubled over the course of the last three weeks as the omicron variant tears through the United States. Health officials warn the entire system could potentially collapse if the pressure continues.
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Man Gets Pig Heart – In a scientific first, a genetically modified pig heart was put into a 57-year-old man to save him from heart disease. Three days later, he’s reportedly doing well. “It was either die or do this transplant,” said the patient. “I want to live.” The question now is whether his body will reject the transplant. If not… humanity may be a step closer to solving the problem of organ shortages for transplants.
FOR YOUR CONSIDERATION
“Investors should take a second look at some of the pharmaceutical companies that have been there since this started. The profits they have made thus far are just the beginning – as this virus is going to be with us forever.”
The bad news – COVID-19 isn’t going anywhere. If you put on the nightmare goggles, things are going to look exactly the same. The good news – the pharmaceutical companies that have profited from the pandemic may be just getting started. Mr. X gives an update on the biotech market and where there is still room to run.
ROGUE RECCOMENDS
Scheme of All Time?
