But at Critical Signals Report, we also know these tricks and distortions can send otherwise broken markets higher before they eventually tank.
Meaning profit opportunities for you.
If the Fed, for example, is crazy enough to keep low-rate debt bubbles and stock markets going, as per the “Powell-Pivot” in March, we may scratch our heads, but we don’t fight the Fed’s decision.
Instead, we capitalize on the opportunity and trade the “crazy” until our signals tell us otherwise.
That’s how we can trade like bulls despite thinking like bears.
This fidelity to signals and profits applies not only to the otherwise insanely over-valued stock and bond markets, but to commodities as well.
At Critical Signals Report, we trade on what’s happening today, not what others are arguing about tomorrow.
Beat the Oil Optimists to the Punch
On January 4, 2019, the signals we’re tracking clearly said to buy the energy complex.
Bullish bets were increasing as production cuts by OPEC and other top exporters were impacting.
Plus, we expected computer-driven short covering by those still short in what was quickly becoming a net-long market, providing an opportunist entry across drillers, producers, and service providers.
Here’s how the trade worked out in the 109 days from January 4 through April 18 …
For the Energy Select Sector SPDR ETF (XLE), it went up 15% and up 48% annualized.
Then for five highlighted stocks: APA, DVN, NOV, NBL, FTI, they were on an average up 26% and up 87% annualized.
Now for those over three months, here was the best trade. For Devon Energy (DVN), it went up 41% and up 137% annualized.
Then finally, if you take a look at the call option for DVN April 18 $31, it was up 373% and overall up 1,310% annualized.
Any way you slice it, energy typifies the “melt up” trade.
Heck, the stocks did just as well as the futures with a whole lot less risk.
And the options being up 1,310% annualized is unbelievable thanks to the signals showing to buy at $0.56 and sold at $2.65
That is a powerful melt up.
And we anticipate much more of this “melting up” in the stock markets as well, despite their inevitable collapse thereafter.
Like the stern of the Titanic rising high above the water before sinking to the bottom of the Atlantic, markets rise dramatically before tanking.
At the Critical Signals Report, we help you on the way up and get you safe before the markets sink, and then make you a fortune on the way down.
Stay tuned for more on how Critical Signals Report makes money in all market conditions.
In the interim, be careful out there.
April 30 2019