Arete Tuesday Newsletter.

We are setting up for a Green Wave Tsunami 🚁

The markets ripped higher with a broad based rally across all sectors.Most notable Semiconductors such as $AMAT $LRCX which are equipment makers. Usually they move first as a precursor to a broader rally in semiconductors both large and small cap. Commodity prices are moving higher. This happens in inflationary periods. What we are witnessing is a perfect storm for the markets. To start with we will have a a lot of capital and stimulus poured into the economy. Goldman Sacs economist stated yesterday they see an Additional $600 Billion in stimulus. JP Morgan was more aggressive. They see an additional $2-$3 trillion over the next couple years. Essentially a multiyear Tsunami of helicopter money. Don’t fight the fed. When will this party stop? Watch the 10 yr treasury for signals.

In Regard to the indexes, The Russell followed through today leading to a powerful pattern developing. We need to see follow through one more day for confirmation. If we close at a higher high on above average volume, We may consider the $TNA trade again. I stated on Twitter to consider $TQQQ on Wednesday.I still believe we will see the Nasdaq lead. The $SPY continues to be muted but chug along higher. It looks and acts great.

I have mentioned Ark Funds before. Consider what Cathie said about her funds. $ARKG she said would outpace any of her funds over the next 5 years. She is telegraphing that Genomic stocks are going to have advancements that lead to large moves. We have done exceptionally well overlaying her fundamental analysis with our technical analysis. I see no reason that will not continue.

Lets look at the indexes!

Lets look at our stock ideas!

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As always all investment decisions need to be made by the individual.We all have different risk profiles. No two people trade the same. Please make sure you follow @Aretetrading on Twitter and consider turning on notifications. There are times my updates are timely in regard to the Newsletter. If you do not see a position and have questions please ask me. Thank you again for all the messages telling me how this Newsletter helped your performance or made you better.

2021 off to a Great start !