This Will Cause So Much Pain

JC Parets
March 17, 2024

Are you prepared for a market environment where Commodities are ripping higher and stocks continue to struggle?

Don't worry, most people are not.

In fact, so few people are prepared for this line to go up, and so much pain will be felt by so many (investors or otherwise), that this is exactly the outcome I'm betting on.

The numerator in this ratio is the CRB Commodities Index, which includes plenty of Energy Futures, Precious Metals and Agriculture.

There aren't any stocks in this Index. They're just Commodities.

The denominator represents the S&P500, as a gauge of stocks. But you're welcome to switch it to the Dow or the Nasdaq and you'll find similar data.

If this line is going up, Commodities are outperforming Stocks. When this line has been going down, it's because Stocks are outpacing Commodities. And the latter is what we've seen.

Fast forward to today, and investors are positioned for stocks, and Technology specifically, to trade higher.

Investors are NOT positioned for Commodities to rise.

If you own the S&P500, then only 3% of your portfolio is in Energy. Only 2% is in Materials.

If you own the Dow Jones Industrial Avg, then only 2% of your portfolio is in Energy and 0% is in Materials.

If you own the Nasdaq100 $QQQ, then 0% of your portfolio is in Energy and 0% is in Materials.

If Energy and Materials (Commodities) are the leaders, then these 3 indexes mentioned above are going to have a really hard time keeping up.

That's exactly what we're betting on.

And tomorrow night Monday March 18th I'll be walking through how to profit the most from this year's inflationary pressures.

There's a lot of money to be made, and I'm going to show you exactly how we're doing it.

Premium Members of ASC can Register Here, if you haven't already.

Our LIVE Conference Call gets going @ 6PM ET Monday 3/18.

My Secret Sauce Revealed

We caught $GME before the major short squeeze. We were all over $NVDA when it was just getting going. And we highlighted $SMCI well before it came the darling that it is today.

At ASC Research, we've spent years developing a series of proprietary scans based on a variety of criteria.

The idea behind each of these is to make it almost impossible for us to miss the next big winning stock, regardless of its size or sector.

These names mentioned above are just a few examples.

This week, Strazza and I discussed at length for the first time the process behind these scans, and how we use them to fish for winning trades.

Click here for a completely free inside look at how we break down price action and identify trades using these scans.

JC

 

 

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