Here's 2 ETFS to Play for Double Digit Gains

  You are receiving this email because you signed up to receive True Market Insider. [Unsubscribe]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insider](. Forgot your login information? Click [here](.     Here's 2 ETFs to Play for Double Digit Gains   Hi there... Thanks for joining me for our weekly excursion in to the greatest arena on Earth -- the stock market. Today we're going to follow up on last week's conversation (["This Powerhouse Sector Lets You "Game" the Market"](). If you're like 99.999% of economists, traders, money managers and other market observers... You're stunned by yesterday's jobs report. Not only does it look like the economy is recovering, but it's doing so ahead of schedule. The unemployment rate fell to 13.3% as the economy gained 2.5 million new jobs in May. This is the largest gain in in new jobs since we've started keeping track way back in 1939. The numbers were so out of line with doomsday expectations -- economists thought we'd see 20% unemployment and eight million jobs lost -- that some folks are giving themselves over to fever dreams and conspiracy theories. They don't believe the numbers are true. And they're prepared to believe that President Trump, or Fed Chairman Jay Powell, or some fat cat on a grassy knoll has cooked the economic books. But no... The American economy is simply stronger (at least by this measure) than we and they were led to believe. Or to say it less charitably, the experts blew it. Surprised? I'm not... ========Recommended Link======== --------------------------------------------------------------- [PUT $4,928 INTO YOUR POCKET EVERY WEEK](   This summer, change the way you trade forever. This free event will show you how you can turn just a few hundred dollars into a major income stream. [Learn More...]( --------------------------------------------------------------- Experts -- medical, financial, governmental -- have hardly covered themselves in glory during the pandemic. And you know the media thrives on crisis, so bad news is their go-to posture. But this recent good economic news clears up one of the great pseudo-mysteries you've been hearing so much about. I mean the "disconnect" between a soaring stock market and an economy that's supposed to be "utter shite", as one of my English buddies puts it. If the economy is actually more robust than Paul Krugman et al. would have us believe, then... mystery solved. Of course, how the economy performs going forward remains to be seen. But what's crystal clear is that the market expects good news. After all, it's taking off like one of Elon Musk's Falcon 9 rockets. (Click any image to enlarge) All five major market averages moved higher over the past week, with small-caps leading the way. The S&P 600 gained almost +12% while our other small-cap proxy, at the Russell 2000 (RUT) gained +8.11%. That's some serious performance. And the large- and mega-cap stocks could barely keep up. The Dow Jones advanced +6.80%, which bested the S&P 500 (+4.91%) as well as the tech-heavy Nasdaq Composite (+3.41%). If we look back one month, we see the same kind of dramatic strength, and again we see small-caps out in front. The SML is up +21.52% -- insane. The RUT is up +19.56%. Clearly investors have an appetite for risk, or they'd be putting their money -- storing value -- in the safer, larger-cap tickers. The Dow, S&P, Nasdaq etc. make up the "eternal" market. That's "the market" your relatives talk about at family gatherings. At True Market Insider we look at the "internal" or "true market". And when we do, we see a world controlled by bulls -- by investors who are buying stock because they expect to see a return on their capital. The image below shows the US Industry Bell Curve. It was taken from our premium data program Sector Prophets Pro, and it shows the condition -- bullish or bearish -- of each sector of the market. (We break the market into 45 sectors. Blue sectors are controlled by bulls. red sectors by bears.) Right now you have to squint to find a bearish red sector. With the exception of the Drugs and Precious Metals sectors, the market at the moment is a deep blue sea. Notice how the blue boxes bunch up toward the right of the curve. That tells us that more and more sectors are getting so strong that they're approaching "overbought" territory, near the 70% level. That's a level where so much buying has taken place that it's easier for stock prices within the sector to fall than to advance. As you can see, right now 14 sectors lie to the right of the dotted yellow line. One of those overbought groups is the Gaming sector. To see where the Gaming sector falls in our 45-sector internal market universe, we look at the Sector Prophets Pro Sector Relative Strength Matrix. This tool ranks all 45 sectors from strongest to weakest, and right now it shows Gaming ranked #7. That's very high, but of course not as high as the #1 position the sector enjoyed last week. While the sector has fallen in rank over the past week, it's still in the top 10 of all sectors. That's the pond we want to fish in when we look for bullish trade ideas. Last week we said that... "The Gaming sector is made up of companies you could call the gold standard in entertainment. Some of the stocks in this space include: Wynn Resorts, MGM Resorts, and Las Vegas Sands Corporation. The sector also houses ETFs that track Gaming, including electronic and video gaming. The Washington Post reports that in March, video game sales reached close to $1.6 billion. That's a 35% increase from March of last year." I also shared with you my experience with "gamers" I've known over the years... and how I came to believe that video games, being addictive, would probably propel the gaming sector higher even after the lockdown come to an end. Right now the Gaming sector's Bullish Percent Index (BPI) chart is nearly in overbought territory (the light red area from 70 to 100): In fact, right now 83.33% of stocks within the sector are on point-and-figure "Buy signals" on their respective price charts. That's a very high level, although as you can see by looking at the X-columns in that red area, the chart has gotten that high (and higher) before. If you're uneasy about the Gaming sector's fall from #1 to #7... or about its overbought condition (where risk is to the bulls), just take a smaller position than you normally would. Maybe buy commit 50% or 35% of the capital you'd typically invest. The VanEck Vectors Video Gaming and eSports ETF (ESPO) looks to replicate the yield and performance of the MVIS Global Video Game and eSports Index. For its part, the index tracks the global video game and eSports market. The ETF is in a long-term uptrend and has gained 89% since the beginning of 2019. As you can see, ESPO not only retraced all of its COVID-19 losses, but it gunned higher after making that 'V-shaped' recovery. I think we can see this one go at least 25% higher as the economy continues to re-open and continues to strengthen. ESPO does trade options, but they are expensive and thinly traded. So I think it's best to stick with a straight purchase of shares in the ETF itself. That said, the ESPO December 40 Strike Call option meets all the criteria for a "Stock Replacement Strategy" option. Another ETF you should look at if you're looking to get bullish on Gaming is the VanEck Vectors Gaming ETF (BJK). This ETF looks to parallel the results of the MVIS Global Gaming Index, where "gaming" includes things like racetracks and casinos. After falling -35% in the latter part of 2018, the fund retraced +62% of its losses when COVID-19 hit. It then fell from $41.65 to $21.00 -- a decline of almost -50%. It has since retraced +80% of that and has moved up steadily on high volume over the past five trading sessions. I think we can look to a double-digit gain in this ETF. Like ESPO, BJK does trade options, but thinly and at a high cost. But if you're "game" for that kind of action (sorry for the pun) you could look at the BJK 32 Strike Call option which has a bid/ask mid-price of $7.55. Before I go... My buddy and colleague Costas Bocelli asked to tell you that he's holding an online event this coming Wednesday (June 10th). It's about [generating extra summer income]( (in the neighborhood of $4,928 per week) through smart trading. The event is free and you can [save a seat by going here now](. Thanks again for stopping by. See you next week, [Bill_Sig]( Bill Spencer True Market Insiders ---------------------------------------------------------------   [FREE EVENT:]( ["This is the perfect trading strategy at the perfect time."]( [Go here to find out how you could bank thousands every week]( --------------------------------------------------------------- RECENT STORIES [Want to Make Consistent Money in the Market?]( [The Most Accurate Indicator You've Never Heard Of]( [The Best Traders All Have This "Superpower"]( [Before You “Double Down” on a Losing Stock, Do This Instead…](     Copyright © 2020 True Market Insiders, All rights reserved. Our mailing address is: 33 SE 8th St, Boca Raton, FL 33432 Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](   DISCLAIMER The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. True Market Insiders LLC is not an investment advisor and is not licensed to give specific financial advice. The chairman of True Market Insiders, Chris Rowe, is also the CEO, CIO and owner of Rowe Wealth Management LLC, which is not owned by and is not the owner of True Market Insiders. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”). However, such information has not been verified by True Market Insiders or the information provider and TMM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. TMM and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made. Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy’s investment objectives, risks, charges and expenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Some performance information presented is the result of back-tested performance. Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the True Market Insiders LLC strategy during a specific period. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon. Back-tested performance results have certain limitations. Such results do not represent the impact of material economic and market factors might have on an investor’s decision making process if the investors were actually managing money. Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. True Market Insiders believes the data used in the testing to be from credible, reliable sources, however; True Market Insiders makes no representation or warranties of any kind as to the accuracy of such data. All available data representing the full platform of investment options is used for testing purposes.