New Money Link Trade Alert:

Hey guys,

I’ve got a new swing trade for you this morning!

But first, let’s exit the following swing trade before jumping into the new one.

For the stocks, let's:

SELL TO EXIT EWY AT $91.50 OR HIGHER.

BUY TO COVER FXI AT $48.50 OR LOWER.

And for options, we'll:

SELL TO EXIT EWY 05/21/21 C91  AT $2.75 OR HIGHER.

SELL TO EXIT FXI 05/21/21 C230 AT $1.15 OR HIGHER.

And now, for our new swing trade, let’s:

BUY XLF AT $36 OR LOWER.

SELL SHORT XLU AT $65.50 OR HIGHER.

And for an options play:

BUY TO OPEN XLU 06/18/21 $66 PUT $1.55 OR LOWER.

BUY TO OPEN XLF 06/18/21 $35 CALLS $1.50 OR LOWER.

This year we’ve seen money flow into XLF in a big way, and as rates go higher money flows out of utilities stocks (XLU). I expect that higher rates trading will come back with a vengeance in May, as I believe the recent decline in the 10-year yield has been priced in.

Remember, it’s important to execute both sides of the link at the same time and to respect the limit levels mentioned above — never chase a trade.

LFG!

Jeff Zananiri

Joy of the Trade