Petricca’s Pick 09/12/2023

Today’s Long-Term pick is to sell short the E-mini-NASDAQ-100 futures contract.

The E-Mini Nasdaq-100 is in fact within my upper 25% parameter (Please call me personally for free Long-Term charts) where the Long-Term fundamental considerations are bearish.

It’s just a matter of time until this bullish beast falls and falls hard due to corporate greed and political greed for power.

Please understand – Greed for political power is more dangerous than greed for money.

With the Labor Day weekend in the rear-view mirror, investors continue to stick their heads in the sand.

No worries, they say – The U.S. economy keeps chugging along even though…

 

• Inflation vexes U.S. households.
• High interest rates are holding the nation’s housing and credit markets hostage with no relief in sight.
• Rising Oil prices continue to tax Americans.
• China’s economic woes continue.

 

I say the chickens are going to come home to roost!

Again, big money political influence would rather tax regular Americans than do what’s necessary to keep the economy viable for everyone.

Mortgage rates are skyrocketing, climbing to an average of almost 7.5%. That’s a huge tax burden on home buyers, who’ve seen high rates increase the monthly financing 80% of an average home purchase by about 21.7% compared to August of 2023 according to Realtor.com.

That coupled with –

Americans total credit card balance is 1.031 trillion dollars in the second quarter of this year, according to the latest consumer debt from the Federal Reserve bank of New York. That’s up from the first quarter of 2023’s RECORD number, leaving the balance the highest since the New York Fed began tracking 1999.

Credit card interest is just another tax for Americans.

 

In June, the Congressional Budget Office (CBO) projected that annual net interest costs on the U.S. debt would total 663 billion dollars in 2023 and almost double over the upcoming decade.

The chat below tells us that the Longer-Term debt problem could not only be problematic for American taxpayers, but the global banking system could be in jeopardy as well.

When interest rates rise, business and consumers will cut back on spending. This will eventually cause earnings to fall and stock prices to crash.

 

Those of you that have significant equity positions should in fact hedge your portfolio with a short stock index position using futures or options.

Today the December E-mini-NASDAQ 100 is trading 15,394.50 more than 7000 lower for the day.

Please call me personally for entry levels and Money Management Strategies that are so important when one makes an investment of this nature.

In the meantime –

Have a great year trading…

Questions? Comments? Please call.

Best wishes,

Frank

Questions? Ask Frank Petricca today at 312-690-7763.