The dollar trade continues after the FED affirmed that the DOLLAR is going to become toilet paper.
As dollar gets cheaper, US stocks are getting cheaper, and thus they can only go up. How to position oneself in such a trade?
i continue to favor financials over materials now. Financials are deeply oversold while materials are overbought.
The inflation trade will unwind after awhile and funds will flow back into financials.
I like dividend stocks too. This include Banco Santander (STD), Annaly (NLY) and I like GOOG too.
I still own BAC, JPM, FAS(cant get cheaper FAS though….).
I will continue to look for more trading opportunities in the MATERIAL sector (bearish side) and perhaps consider looking to short the gaming sector too with very tight stop loss though.
We have already seen how LVS continues to soar higher. 10 straight up days for LVS!
However, it is possible that a mini correction may occur very soon.
STOCKS are overbought. FED trade is done. May not work too.
Interest rates will fall. Money flow into stocks? But money can also flow into bearish funds and pay margins for short futures.
I will start to reposition my portfolio with some bear funds to hedge any downside risk. Perhaps it is time to purchase some PUTS too to protect my long positions.
I am buying PUTS for FAS, BAC and JPM.
(I DON’t like getting charge overdraft fees, my coffee is expensive enough already) It’s going even higher with the inflation trade!
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