Follow Chris Johnson Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
We've been waiting patiently for Congress to start working on another fiscal stimulus plan, especially now, as we stare down the barrel of a second coronavirus wave.
It's looking like an aid package isn't likely to happen until late January, which leaves a lot of people and businesses in a tight spot…
While the bill will offer a boost to both consumers and the stock market, there's a trade that's already seeing the results of an almost "sure thing," a ramp-up in infrastructure spending.
Just last week, the Brent Spence Bridge that carries I-75 and I-71 over the Ohio River – two of the most commercially used interstates in the country – caught fire after two trucks collided. The bridge has been near the top of the government's list of infrastructure projects that had to happen for some time now.
Both Presidents Obama and Trump made commitments to repair or replace this bridge, but politicians "kicked the can down the street" on this and others alleged priorities. Now, the Biden Administration is making it clear that infrastructure spending and neglected projects will be a priority for the next four years.
Right now, there are a few ways that you can play this "alternative stimulus plan." First, look at the steel companies…
TRIPLE-DIGIT PROFIT POTENTIAL: These five stocks are about to go into "hyperdrive" – here's how to play them… Details…
U.S. Steel Corp. (NYSE: X) is emerging from a multi-year bear market as the stock – and others in its industry – saw no real relief from the tariffs that were imposed on foreign steel. The stock is up 50% from the beginning of October, and we're likely to see another 50% before the end of February.
This all comes down to an increase in infrastructure spending by the incoming administration, an increase that will lead to some fast profits over the next few months.
Another company gearing up for a similar move for the same reasons is Trinity Industries Inc. (NYSE: TRN).
This company manufactures safety barriers and guards for highway applications. Like U.S. Steel, Trinity will benefit from what is likely to be the massive infrastructure spending bill sure to be a focal point of American politics and policy throughout the Biden presidency.
Here's how to play them for fast profits:
Buy shares of U.S. Steel Corp. (NYSE: X) using a limit order of $10.50.
Buy to open July 16, 2021 X $10 calls (X210716C00010000) using a limit order of $2.35.
Buy shares of Trinity Industries Inc. (NYSE: TRN) using a limit price of $22.
Buy to open July 16, 2021 TRN $20 calls (TRN210716C00020000) using a limit price of $3.90.
Making Money in a World of Change
You probably won't be surprised to hear that U.S. policy and infrastructure isn't the only thing expecting a massive shift over the next few years.
Between COVID-19, on-again-off-again stimulus negotiations, and a new POTUS, change has become the new normal. And right now, being prepared for the next big change is the best way to make the most money in today's market.
That's why Shah Gilani has been keeping a close eye on one corner of the market that's experienced a lion's share of extreme transformation. But what we've seen from tech is nothing compared to what Shah's just uncovered…
After some of the latest shifts in the American economy, Shah says we're on the cusp of five HUGE stock catalysts in the tech sector, events he's calling "hyperdrive events."
What's more, he's showing you how to play all five of these events for maximum returns.
Just click here to get the full details…
Follow Money Morning on Facebook and Twitter.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Straight-Up Profits. He also contributes to Money Morning as the Quant Analysis Specialist.