So What Broke?

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] [Get Lance’s No. 1 stock for 2024]( — and SIX reasons to buy it — LIVE at 4 p.m. ET on Thursday! So… What Broke? Dear Fellow Trader, I’m no conspiracy theorist. I’m an economist. But I’m also definitely not a person who believes in coincidences. Last year, the financial markets experienced a dramatic downturn heading into September. At the time, our Momentum Signals were negative. Most people couldn’t quite determine why the market was going lower… But it was. We didn’t ask. We never should. All we knew was to get out of the way. And when the smoke cleared at the end of the month, a crisis revealed itself. It turns out that the British pension system was on the brink of insolvency. Pension systems — desperate for cash — were dumping Gilt bonds at a breakneck pace, driving yields up and bond prices down. And the British central bank had to make a quick decision... Either allow the economy and assets to break… or begin a new process of quantitative easing. The bank chose the latter — to buy assets and continue raising interest rates at the same time. Something significant broke. Did the same thing just happen in America? Let’s take a look. In October, we saw the biggest sell-off in U.S. bonds by China in four years as it attempted to prop up its currency. But the selling continued across Asia. At the time, the 10-year bond pushed to 5%, and markets remained in a freefall into oversold conditions. With interest rates at 5%, we had a serious problem within the banking system. Bank of America Corp. (NYSE: BAC) had hundreds of billions of dollars in unrealized losses, something that spilled across the entire system. While most banks aren’t selling and abandoning their posts, there was something else that happened. The U.S. government’s interest levels surpassed the annual amount of money that we spend on the military. At the time, we saw a rush of short covering on bonds, with many U.S. buyers and institutions locking up 5% rates. But something else seemed odd about the situation. At the time, the narrative began to accelerate that the Fed would need to start cutting rates to address the underlying economy. Coincidence? Did something break? Was there too much leverage on bonds at 5%... and what exactly would happen if that selling pressure had accelerated to say 6%? At 6%, Bank of America’s leverage would be incredible to calculate, and many financial institutions would face stress on their balance sheets as more cash piled into money markets and their increasing interest rates. Higher rates would suck even more money out of depositor accounts at a time when banks are already under pressure. We are at record levels, and hints of impending rate cuts would stop that tide and possibly make it recede. Here’s the thing: The Fed’s core inflation number is still very high compared to its inflation target. And I must wonder if the Fed has done what many economists suggested it should do: accept a higher inflation target of 3%. Such an acceptance — even off the record — would be a lightning rod for the equity markets. In addition, it would act as a similar type of action that the Bank of England embraced. Right now, these markets are melting up, and shorts are aggressively covering single short stocks. Given the overbought territory, it’s feeling like this Santa Claus rally should stop… But monetary policy — and monetary inflation — won’t let it. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Lance’s No. 1 Stock for 2024 Is… Lance Ippolito has been trading the market for a very long time, and he’s seen more than his fair share of all-time highs and lows. And if there’s one piece of advice he said he’d pass along, it would be this… Don’t listen to what people say… But rather, [watch what they do.]( In the last couple of days, we’ve heard the Fed and Chair Jerome Powell say all sorts of things… But Instead of listening, Lance is watching… And in particular, he’s watching the insiders… Because right now, they’re buying shares at the fastest rate in over a year… A lot of folks don’t know this, but insider buying often aligns with short-term bottoms… [And Also Super Bullish Conditions]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] _______________________________________________ [] [] [] [Get Lance’s No. 1 stock for 2024]( — and SIX reasons to buy it — LIVE at 4 p.m. ET on Thursday! So… What Broke? Dear Fellow Trader, I’m no conspiracy theorist. I’m an economist. But I’m also definitely not a person who believes in coincidences. Last year, the financial markets experienced a dramatic downturn heading into September. At the time, our Momentum Signals were negative. Most people couldn’t quite determine why the market was going lower… But it was. We didn’t ask. We never should. All we knew was to get out of the way. And when the smoke cleared at the end of the month, a crisis revealed itself. It turns out that the British pension system was on the brink of insolvency. Pension systems — desperate for cash — were dumping Gilt bonds at a breakneck pace, driving yields up and bond prices down. And the British central bank had to make a quick decision... Either allow the economy and assets to break… or begin a new process of quantitative easing. The bank chose the latter — to buy assets and continue raising interest rates at the same time. Something significant broke. Did the same thing just happen in America? Let’s take a look. In October, we saw the biggest sell-off in U.S. bonds by China in four years as it attempted to prop up its currency. But the selling continued across Asia. At the time, the 10-year bond pushed to 5%, and markets remained in a freefall into oversold conditions. With interest rates at 5%, we had a serious problem within the banking system. Bank of America Corp. (NYSE: BAC) had hundreds of billions of dollars in unrealized losses, something that spilled across the entire system. While most banks aren’t selling and abandoning their posts, there was something else that happened. The U.S. government’s interest levels surpassed the annual amount of money that we spend on the military. At the time, we saw a rush of short covering on bonds, with many U.S. buyers and institutions locking up 5% rates. But something else seemed odd about the situation. At the time, the narrative began to accelerate that the Fed would need to start cutting rates to address the underlying economy. Coincidence? Did something break? Was there too much leverage on bonds at 5%... and what exactly would happen if that selling pressure had accelerated to say 6%? At 6%, Bank of America’s leverage would be incredible to calculate, and many financial institutions would face stress on their balance sheets as more cash piled into money markets and their increasing interest rates. Higher rates would suck even more money out of depositor accounts at a time when banks are already under pressure. We are at record levels, and hints of impending rate cuts would stop that tide and possibly make it recede. Here’s the thing: The Fed’s core inflation number is still very high compared to its inflation target. And I must wonder if the Fed has done what many economists suggested it should do: accept a higher inflation target of 3%. Such an acceptance — even off the record — would be a lightning rod for the equity markets. In addition, it would act as a similar type of action that the Bank of England embraced. Right now, these markets are melting up, and shorts are aggressively covering single short stocks. Given the overbought territory, it’s feeling like this Santa Claus rally should stop… But monetary policy — and monetary inflation — won’t let it. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Lance’s No. 1 Stock for 2024 Is… Lance Ippolito has been trading the market for a very long time, and he’s seen more than his fair share of all-time highs and lows. And if there’s one piece of advice he said he’d pass along, it would be this… Don’t listen to what people say… But rather, [watch what they do.]( In the last couple of days, we’ve heard the Fed and Chair Jerome Powell say all sorts of things… But Instead of listening, Lance is watching… And in particular, he’s watching the insiders… Because right now, they’re buying shares at the fastest rate in over a year… A lot of folks don’t know this, but insider buying often aligns with short-term bottoms… [And Also Super Bullish Conditions]( [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the Garrett {NAME} channel and you’re set: [9_jjnFuAvno0MjNh]( See you there! Garrett [] _______________________________________________ [] Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein. Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio. Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] Disclaimer: The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein. Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio. Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit thetradingpub.com/terms-of-service/ for our full Terms and Conditions. A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States