ITPM Flash 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.

Disclaimer

This blog post is for informational purpose only and no investment advice. Always do your own research! Read the disclaimer here >>>

ITPM Flash Ep42 – Summary

In this episode senior trading mentor Raj Malhotra is taking about what he is thinking about the current market environment.

In May S&P recovered the April losses quite nicely but is basically flat compared to March which is also true for Nasdaq and Russell.

ITPM Flash  – The Power Rally and Current market environment.
From ITPM’s Flash video on Youtube

Raj Malhotra mentions that there are some pretty unusual correlations in the market compared with historical data. When we look in the commodity space, oil and related stocks haven’t done anything since March while in the same time period copper has rallied:

Power Rally and Current market environment -  ITPM Flash, Explain by Stock Market Connaisseur Trading Blog - Profitable Retail Trader
From ITPM’s Flash video on Youtube

Cocoa was probably the commodity with the biggest price increase YTD. We would think that names like Hershey’s, which rely heavily on cocoa as an input, might get hurt.

The Current Power Rally - ITPM Flash
From ITPM’s Flash video on Youtube

But if we take a look at their chart, they are also up around the same as the S&P.

ITPM Flash - Market Chart
From ITPM’s Flash video on Youtube

Emerging markets are performing quite well and have outperformed the US. There are also some really good breakouts in the biotech sector. Raj says that this sector is difficult to trade and you need to know what you are looking for. There are great winners but also great losers.

Utilities

The sector that surprised Raj Malhotra the most in recent weeks is: Utilities.

ITPM Flash  – The Emerging Markets Performance
From ITPM’s Flash video on Youtube

Utilities are usually bought by the market as a “flight of safety”. During recessions they are loved because of their constant cash flow and dividends, but they rarely “lead” the market. It just means that during recessions the sector is not down as much as the rest. Yes, lower rates are good for them because their dividenc yields are more attractive. But at the moment, the 10-Year yields more than most of utilities.

Why are they up so much?

Raj thinks that the rise of AI has something to do with it. Microsoft, Google, Meta and Amazon are all investing in their data centers. Utilities that are in the sector of power, like nuclear or clean energy, might actually benefit from this trend. Data centers need a lot of power which need utility companies to provide them. One company Raj highlights is “NRG Energy”.

ITPM Flash  – Rise of AI and Current Markets Performance
From ITPM’s Flash video on Youtube

There last quarter earnings were okay but not outstanding. Raj likes that they are shifting their resources to smart home, home energy divisions which should boost profits and revenue. On a fundamental basis this stock is “cheap” with a PE lower than 12. Do your own research!

ITPM Flash Ep42 – Conclusion

Raj Malhotra thinks the rally is broadening out. There are a lot of opportunities in the commodity space, which were highlighted before but also in a lot of other areas, like utlities or biotech. As traders we have to do our homework and hunt for these treasures. Don’t be lazy and copy trade someone elses trade idea. This will never make you a good trader!

Good luck on your hunt!

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

reviews small

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

webinar small
anton+me small

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

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments