Dear Reader,
Another day, another short selloff in the morning.
Then, the Buy the Dip crowd reemerged to force out the shorts.
I don’t understand this behavior because hedge funds and other institutions are using ANY short-term pop to reduce their exposure to the equity markets. But it’s been effective.
And if you’re trading reversions – as I’ll explain today – you can make a lot of money fast.
But before we get to the lesson around reversions during the 12:30 show…
I need you to see this huge headline from the Eastern Hemisphere.
Here Comes the Foreign Money
As I explained Monday night during my live event, upwards of $4 trillion is coming from Europe and other places around the world into the U.S. energy and manufacturing sector.
Why?
Because natural gas prices are under $3.00.
In Europe, it’s six to seven times that figure during mild weather.
Manufacturing can’t survive in Europe with those energy inputs. Germany’s $2 trillion manufacturing center was leveraged on roughly $20 billion in cheap Russian gas.
Now that this gas is gone… money is flowing into the U.S.
Oilprice.com reported Tuesday that upwards of $100 billion could flow directly into U.S. liquefied natural gas (LNG) projects – an investment that could double the amount of LNG the nation exports by the end of the decade.
Remember when we were going to ban natural gas and fracking?
Meanwhile, it’s not just Europe. Big money is flowing from the Middle East as well.
The world’s largest public company – Saudi Aramco – is the state energy power of Saudi Arabia. Reports indicate that the company might invest soon in U.S. oil exporting terminals to take advantage of the supply security afforded by our country.
This isn’t some small amount of money either.
The benefits of U.S. natural gas and our isolation from the problems on the global market are well established. The question is, how will you take advantage of this opportunity
At Flashpoint Trader, we have 14 companies that we’ll be actively trading in the weeks and months ahead. In fact, we just got started yesterday in the energy patch.
And we’ll keep our conversation and trades going forward during today’s session.
Today’s Momentum Reading
Recap: The World’s Biggest Indicator (Momentum) is Red…
The trend is lower highs and lower lows as we approach the Friday jobs report. Thursday has been the worst day of the year in 2023. And Friday afternoon has presented some rather stunning squeeze plays. We remain net short while the antics continue in this market. It’s very frustrating when time decay eats into short positions, but the selling among funds is noticeable. We’ll see if this market can get off the ground anytime soon.
What You Missed
I wanted to send over the replay video in case you missed my $4 Trillion Escalation in the East presentation Monday evening.
Go here to watch the full video.
I broke down the war in Ukraine and how it could bring trillions home to U.S. energy and manufacturing.
I gave away 14 companies to watch over the next two years – plus a list of popular stocks that you need to avoid.
Then I showed the series of catalysts we’re waiting on before we make our next trade.
If you couldn’t make it to the livestream, click the link below.
Watch: the $4 Trillion Escalation in the East – full video.
The situation in Ukraine is escalating quickly.
Right now, we have the opportunity to get in front of the massive changes in money flow.
Enjoy the presentation,
Garrett
