ITPM Flash Ep25 is a video series from the Institute of Trading and Portfolio Management (ITPM), founded by Anton Kreil, that provides market insights from the Institute’s senior trading mentors.

ITPM Flash Ep25 – Summary

In the latest ITPM Flash episode, Raj Malhotra, Senior Trading Mentor at ITPM, shares key insights into a potential trade setup amid changing market dynamics. Here are the key takeaways:

  • Inflation Signal and Market Response: The recent CPI report signaling lower inflation has triggered a drop in the 10-year yield and subsequent rallies in US indices.
  • Outperformance of Small Caps: Contrary to expectations, the Russell ETF (IWM) has outperformed, rising 5.2% since the November CPI report, indicating potential relative strength in small caps.
  • Anticipating Market Rally: With expectations of stable or lower rates, Raj anticipates a significant rally, possibly 10-20%, in the broader market (S&P), with the potential for even more substantial gains in small caps.
  • Contrarian View on Small Caps: Despite assumptions of higher borrowing costs impacting small caps negatively, recent market moves and options market activity suggest the potential for a broad rally, especially among laggards.
  • Options Market Optimism: Upside call buying in IWM indicates optimism, and a 20% move could lead to significant gains of 50-100% in individual small-cap stocks.
  • Case Study: The Geo Group (GEO): Raj discusses a small-cap stock, GEO, with a recession-proof business managing prisons, highlighting its potential catalyst in the ongoing US border crisis.

ITPM Flash Ep25 – Conclusion – Opportunities in Every Market:

Raj emphasizes that, even for bearish investors, there are cost-effective ways to play the upside, reminding traders that “sometimes crime does pay.” The blog post concludes with a call to explore opportunities in the evolving market landscape.

This summary provides a snapshot of the valuable insights shared in the episode, guiding readers through the key points and potential opportunities discussed by Raj Malhotra.


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About me

The Institute of Trading and Portfolio Management (ITPM), founded by ex-Goldman Sachs trader Anton Kreil, helped me on my journey to become a profitable retail trader

Review of ITPM Courses

The courses of the Institute of Trading and Portfolio Management helped me massively to become a profitable retail trader. I genuinely believe that ITPM provides the best trading education on the market – but not everything is perfect. Find out more in my reviews

Results of my Mentoring with Anton Kreil

In September 2022 Anton Kreil asked me and another one of his former mentees, if we want to do a webinar with him. After the Thailand class in April 2022 and the following mentoring with Anton from Mai to July 2022 I thought it was great opportunity to show what I have learned and how I have progressed

ITPM Thailand Mentoring

After completing my first ITPM Course, the PTM 1.0 (the predecessor of the PTM 2.0), I knew I want to do a mentoring. After a thorough analysis I decided to attended the April 2022 Thailand mentoring class

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