New Money Link Trade Alert:

If you're new to Money Link or have any questions about how to allocate stock positions vs. options or how to execute Money Link trades, watch this video first.

Hey guys,

** I'VE UPDATED THE ENTRY PRICES SINCE THE ORIGINAL ALERT WENT OUT THIS MORNING. SEE BELOW FOR UPDATES. **

Happy Monday! I’ve got a trade for you to start the week.

First I’m exiting this Swing Trade:

SELL TLT at $169 or HIGHER.

BUY TO COVER the XOP short at $55.50 or LOWER.

I’m also exiting the Options Play:

SELL TLT 9/18/20 $167 CALL at $4.90 or HIGHER.

SELL XOP 9/18/20 $55 PUT at $3.70 $3.25 OR HIGHER. (Note update exit price.)

Then we have a new Swing Trade:

BUY QQQ at $274 or LOWER.

SELL SHORT FXI at $41.20 or HIGHER.

And there’s an Option Play:

BUY QQQ 9/18/20 $271 CALL at $10.50 LOWER.

BUY FXI 9/18/20 $42 PUT at $1.90 or LOWER.

If you look at the top half of this spread chart between QQQ/FXI, you’ll see that QQQ (the white line) was up 4.24% in the last month, while FXI (the orange line) was down -5.58%. These two charts are diverging in a big way again and I expect a big move, with either the QQQ going higher, or FXI completely crashing in the next 30 days.

As you know I’ve been playing the money flows out of China and into U.S tech for months now. And it’s worked very well. We’ve traded this Money Link for a healthy profit twice over the last months. The U.S.-China trade wars are about to go next level and this trade should work really well under those circumstances.

LFG!

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.

As always, you can track our open positions here.

LFG!

Jeff Zananiri
Joy of the Trade