**Loading your recession**

[Penny Hawk] [[Alert] The First Mega Profit Trade]( Quantum Scripts is Tom Gentile's latest trading strategy. When released, we only had backtesting to go on. But now, we have real numbers. His first Mega Profit Trade hit the 100% profit target in just 24 hours. Tom and his traders captured those gains with a partial close and are leaving the rest open to ride. That second half is sitting around 180%... but we're aiming for more. [Go here to learn how he's using Quantum Scripts to find more of these Mega Trades](. --------------------------------------------------------------- Thursday, June 23, 2022 Loading your recession Dear traders, There are some CRAZY things going on today and yesterday in the markets. If you were with me this morning I went down a bit of a rabbit hole on energy sitting at its flash point. I know when I do these live shows I can get a little excited and forget to take the time to let you digest the info. I think it's worth the time for me to go into a bit more detail and have it written in black and white so you can review these concepts because they can turn you into a real powerhouse of a trader. Now today we were looking for what oil inventory numbers were saying. Regardless of what the headlines are trying to make the markets do, the way the key energy stocks make out in the next few weeks all boils down to whats being taken out of the ground and whats being put into the tanks. Seasonality will have a big part of this market seeing a dip in July. Monthly seasonality plays out more than any other way of extrapolating this kind of data. I put this chart together using monthly seasonality and a 20 year rolling average to help you understand what to expect from the coming weeks in the energy sector. As you can see XOP is only positive 44% of the time and it averages -2.9% with nothing else going on just over the last 20 years. I don't know about you but 44% isnt something I'm going to write home about. XLE has me feeling a tad bit better at being positive 58% of the time and averaging only -.2% but I still can't be bullish with numbers like that, it wouldn't make any sense Finally back to more of the same on XES. It's a coin flip, a 50-50 shot and averaging a depressing -1.9% over the last 20 years. Numbers don't lie. This is what I'm talking about when I say energy is at its flash point. I know going into July that we are going to hit a speed bump of negative performance. This is the only sector in the market that shows this happening from a seasonal level. Now what does this mean for you? It means that a flag should be going up in your mind, your head should be on a swivel. We NEED to be watching what is going on with XLE if we are going to be looking into the energy sectors. We all want to be bullish on oil. We all want to be able to go out and just buy stocks in the energy sector and watch them climb but we can't have that mentality right now. Really a lot is going to happen before we can adopt that frame of thought again. Unfortunately, before we can really get back into that way of trading we need the buy-the-dip mentality to fail. Without that, we are never going to let this sector hit its floor. We will have to continue the labor intensive trading that we have been going through. Let's be honest though if you've been following my teachings it has be worth the grind, am I right? Now when looking at seasonal data 20 years can be a lot! Within that data there are a few little flecks that I think we should zoom in on and think about how this could be replicated in today's markets. More specifically July of 2008. We are in a similar situation economically there is a slowdown that is happening and we are setting our countdown timers to the start of an impending recession. When we take that closer look we see that the monthly returns go from -.2% to a substantial -15.9%. Does this mean we should all be running for the hills? We should go find a bunker in the woods and let the dust settle? NO! There is a lot of money to be made from these conditions. We need to understand the seasonality and the history of each one of the months. Understand what each sector is doing, be willing to adapt based off current trends and market conditions. That is how you come out on top of the markets. Okay, I'll get off my soap box here so we can take a closer look at XLE. XLE had a Relative Strength Index of 38.8 so it's not quite oversold yet but it has reached a flash point. We know what the energy sector has done in the past in today's conditions. We see the direction XLE is moving. We know the market sentiment around the energy sector. What else? Nothing, we sit back trust the work we have done and watch the markets work against those who are buying blindly. As for you? You should be able to take this information and with confidence, charge at the markets as we head into July and dive deeper into this bear market. I'm going to be touching on this topic a bit more here soon but for now I must say bye. I hope this can be of benefit when positioning yourself in the markets leading up to, and during the coming weeks. If you have questions be sure to jot them down, you know where to find me and ask! Talk soon, Chris Johnson Quantitative Specialist, Penny Hawk --------------------------------------------------------------- [Money Morning Red Alert] The best way to receive the most timely, actionable opportunities from Money Morning is by joining our text messaging service, Red Alert - free of charge. [Text INCOME to 21852]( By texting INCOME to 21852, you are expressly consenting to be texted about investing news, trade alerts and marketing communications from Money Map Press, LLC about Money Morning's Red Alert text messaging service at the phone number you use, even if the phone number is on a corporate, state or national do not call list. You also consent and unconditionally agree to our [Privacy Policy]( and [Terms of Use]( including the arbitration provision and class action waiver contained therein. Your consent is not required to make a purchase. Msgs may be sent using automated technology. Message frequency varies. Msg&data rates may apply. Text HELP for HELP and Text STOP to STOP. You are receiving this e-mail at {EMAIL}, as part of your subscription to Penny Hawk. To remove your email from this list: [unsubscribe here]( or manage your Money Map Press [Email Preferences](. To cancel, or for any other questions or requests, please contact our Customer Service team: [Online]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Penny Hawk | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday ‑ Friday between 9:00 AM and 5:00 PM ET. © 2022 Money Map Press. All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Money Map Press. 1125 N Charles Street, Baltimore, MD 21201. [Website]( | [Privacy Policy]( | [Terms & Conditions]( [sg_hidden_unsub]