Issue 15: Commodities Rally With Inflation - Masters in Trading Digest

Commodities Rally With Inflation

Welcome to Issue 015 of Masters in Trading Digest.

In today’s FREE MIT Digest, we discuss how traders can anticipate movement (risks) to safeguard their portfolios.

We’ve all seen the headlines “Inflation Rises 7% Over the Past Year, Highest Since 1982”

What can we do?

Good investing,

Jonathan

The Inflation Trade

Inflation plowed ahead at its fastest 12-month pace in nearly 40 years during December, according to the closely watched CPI, the Labor Department released a few weeks ago.

Inflation is here, we can agree on this; right?  

What can we do?

Traders need to react to protect against risk.

Most everyone can tell you they expect inflation in the coming years but what are they doing to protect themselves?

What are you doing to protect your portfolio from expected inflation?

On November 16th, 2021, we shared the blog post:  “Trading Inflation, Infrastructure and Metals

In that post, we offer 6 reasons why Inflation is here to stay.

Trading inflation, infrastructure & metals

The trades were meant to protect as Inflation slowly took over the front page of news stories.

November 16th Inflation Ideas in Copper:

Our favorite Long Trade in commodities today is long Platinum.

Here’s a 3-year chart looking at the difference between Platinum, Gold, Silver and Copper.  Notice how inexpensive Platinum is to the other metals over the past 3 years?

  • Copper(/HG)
  • Platinum(/PL)
  • Gold (/GC)
  • Silver (/SI)

For clients (or anyone) I would recommend finding some small-cap Platinum and/or Copper companies that have liquid options to trade.  This is where we can find some EDGE!

HEARD ON OUR YOUTUBE CHANNEL

The Mother of All Buys Signals

Includes back-tested data

Learn more about the VIX Trading System from Masters in Trading

FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

The next issue of the MIT Digest will be released Friday, January 21st, 2022.

We are getting into the earnings season.

This Friday we will discuss earnings expectations for the first quarter of 2022.

Keep your feedback coming into support@mastersintrading.com.  We’re excited to share your feedback along with fantastic suggestions for upcoming issues.

Until then, trade smart and always manage your tail-risk.

Thanks for reading,
Jonathan Rose


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Masters in Trading Digest - Issue 15

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