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Ignore the Tape Bombs. Rising Rates Aren’t Bearish for This Watchlist

by | Sep 28, 2021

Here we go again.

The bears were out in full force across financial media Tuesday, completely freaking out about a 1.5% interest rate.

One point five.

Is that number significant in terms of relative movement?

Of course. It was a lot lower just a couple weeks ago.

And yes, it is a clear breakout above recent trends.

Source: Bloomberg

But it’s still nowhere near its previous cycle ramp-up from back in January to March, when it hit 1.77%.

And if I may be so bold as to jog your memory, what else happened from January to March?

I’ll give you a hint: It rhymes with “lame top.”

Source: Bloomberg

That’s right, the uber-epic meme-stonk short squeeze extravaganzapalooza where the whole market only went up lasted from January to March — at the same time interest rates went up.

Don’t look now, but it appears something like that is about to happen again.

So pay no heed to the bears. They’re way too transfixed on Nancy Pelosi, natural gas prices, China and crypto.

Fortune Research Weekly Watchlist: Sept. 29, 2021

Source: Bloomberg

Instead, focus on what worked back in the first quarter.

Technology, financials, energy, consumer discretionary, crypto and small-cap garbage stocks.

If you bought the dip Tuesday in Grayscale Ethereum Trust (OTC: ETHE), ProShares UltraPro QQQ (Nasdaq: TQQQ) or Direxion Daily S&P 500 Bull 3X SHares (NYSEArca: SPXL), congratulations… You’re doing it right.

If you didn’t, maybe you’ll get a chance Wednesday.

But right now we want to keep last week’s watchlist the same, but add in some smaller cap tech software via the iShares Expanded Tech-Software Sector ETF (NYSEArca: IGV), leveraged small-cap exposure via the Direxion Daily Small Cap Bull 3X Shares (NYSEArca: TNA) and our old friend the United States Natural Gas Fund (NYSEArca: UNG).

*price at Tuesday’s close

Ignore the financial media tape bombs and buy them on red.

All the best,

Matt Warder

Fortune Research

WRITTEN BY<br>Matt Warder

Matt Warder

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