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Wednesday, March 29, 2023

Trades that are working

Trades that are working  

If you caught the CNBC Fast Money show last night, then you may already know what trades I'm about to reveal. Of course, TV traders don't reveal the trades that have been working, until they want to unload those trades onto an unsuspecting public, and I'm getting ready to exit at least one of the trades I'm about to mention. 

1. Restaurants 

March 24th: Restaurant Stock Rally Continues, But It's Not What You Think 

The first stock mentioned in that article is Red Robin Gourmet Burgers Inc.? That's a stretch.... If I wanted a gourmet burger in Chicago, Red Robin wouldn't be my first choice! 

$RRGB Red Robin - This thing has been on a tear for the past 3 weeks, after breaking out above the 10.46 level. Sure it can probably go to $16, but at this point, the risk is to the downside. 

I wouldn't trade most the restaurant stocks on that list, let alone eat there, for all the tea in China.

Chicago is best known for its Deep Dish Pizza, but we got everything here!  

We have a Heavy Metal themed restaurant in Chicago called Kuma's Corner, that's always fun. All the burgers are named after metal bands, and metal music is always blaring... skulls and upside-down crosses adorn the walls. It's like Halloween, every day of the year!   

That's just one of the 22 burger places in Chicago - linked below. 
22 best burgers in Chicago (linked)

I prefer grass fed beef, quality ingredients, and no bun. A healthy burger salad, and I know where to get one at Oak Restaurant, but I digress!  


2. Homebuilders  

Sure, just when most investors believe there's a banking crisis, and lending is going to tighten up, let's run up home builders!  

This is one of Jon Najarian's favorite sectors, so even though I haven't seen him on CNBC for a while, I suspect he's still lurking in the shadows.  

I actually thought I liked the Home builders, when I was thumbing through some charts yesterday... but it looks like I was mistaken!   

$XHB Home Builders -  I don't really see this breaking out of the current trend. 

I should come up with a short term view, and make it look bullish, and pump that on Twitter, just to see if I can trigger some trolls/bots to retweet it lol 

3. Energy 

Energy I like, and we've been enjoying a rally there for several weeks. 

Funny that only now does Fast Money mention that the trade is working. 

I'm seeing futures up this morning, and this looks like it's going to be an opportune time to take some profits. 

Speaking of Energy. Remember when I made a special offer in one of my recent news letters...? That was the trade, I had up my sleeve. 

Sadly, none of my subscribers took me up on that offer. 

Broader market

Looks like we're going to see a retest of the recent highs. 

I think the $VIX - hammered below 20 (again) - looks like it could be why program trading was triggered to buy futures, but this could be setting up for another short squeeze on the $VIX. Maybe not today, but I'm a little nervous here.  

I wish I had more time. I didn't even have a chance to review the China trade, as news out of China, about Alibaba possibly splitting up into several companies, is lifting every boat. Watch for $BABA to be pumped back above the 50 day moving average.

I also have more information on the recent banking collapse, that will have to wait. 

Take care, AA 

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