Only card I have left is … taper

Good morning!

The markets went for new records after what will go down in history as the most dovish hawkish Fed announcement in history.

Here’s my playbook.

1 – Only card I have left is … taper

Team Powell did exactly what everybody expected yesterday when JPow announced that he will scale back purchases of Treasuries by $10 billion and mortgage-backed securities by $5 billion. But then he dropped the big one … stressing rates would stay near zero. (Read)

The markets, of course, liked that and promptly headed higher making my morning Tweet look like sheer genius:

Honestly though, it’s not and neither am I.

I simply knew – and you did too if you’ve been reading along for any length of time - that the world’s biggest, most liquid traders would lever up when they heard about the zero rates thing because that means they can stay on the gas. Probably through mid-2022 at this point.

As always, do what Wall Street does, not what they say!

Repeat after me … big … liquid … stocks. That’s what you want to own because that’s where all that money is going (again).

2 – Wuuup, there it is.

Many cryptoratti and certain Pluto loving CEOs want you to believe that trading is free but that’s never the case. There is always a catch.

Coinbase just announced that it’s going to allow commission-free trading but in order to take part users will have to pay a subscription fee. Wuuup, there it is! (Read)

My advice is very simple … focus on making money and learning what it takes to do that rather than wasting a lot of energy trying to find the blue light special or getting something for free.

3 – And people wonder why I prefer the “other” big vaccine makers

No bones about it. Pfizer is my preferred “Virus+” stock for the very simple reason that they’re going to make a pile of money from Covid vaccines … then take what they learn about mRNA medicines and apply that knowledge to the rest of their portfolio. A move that is in place and boosting top line profits significantly. Moderna, on the other hand, just took a header after announcing cuts to 2021 Covid vaccine sales. (Read)

I’ll probably do a little bottom fishing by selling cash secured puts if it makes sense.

4 – News flash: insurance companies don’t want you to be healthy

The Mayo Clinic and CA-based Grail have developed a new blood test that has an 89% accuracy rate in predicting cancer signal origins yet only as a 1 in 200 false positive rate. Naturally, the $949 test is not covered by insurance.

Contrary to what those flashy commercials want you to believe, insurance companies do not have your back and do not really want you to be healthy. Pinpoint tests like this one will ruin their party by allowing health practitioners to focus on what really ails you … that effs up the fat, expensive premiums they charge us at present. (Read).

By the way, I wrote about this earlier this year in a special report on DaaS (Diagnosis as a Service). It is FREE and includes a few specific stock recommendations to get you started. It’s a trillion-dollar industry and one that almost nobody sees coming. Get your copy now

5 – 16 Scandals Zuckerberg has faced over the last 10 years

Facebook ... Meta … doesn’t matter what you call it, it’s not a nice place. There are (finally) serious questions being raised about how the company has continually placed profits over mental health, hate speech and all sorts of other bad mojo including disinformation, anticompetitive behaviour, predatory marketing, meddling in elections here and abroad.

What really got my goat was the tests Team Zuckerberg ran on more than 70,000 unconsenting users in 2012 to test how removing specific words from their newsfeeds affected their reactions to specific posts. And that’s not even the half of it!

The buck really does stop with Zuck (Read)

Bottom Line

Many people try to get ahead of the Fed but investing and trading based on the reaction is almost always the most powerful move.

Why?

Because prices get stretched and volatility gets jacked when everybody to tried to get ahead realizes their mistake and comes rising back in. You can use both of those things to your advantage if you know what to look for and which tactics give you an edge under the circumstances.

As always, I will be with you every step of the way!

You got this – I promise!


Keith