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Washington

How to Cash In on the Transatlantic "Split" That's Got Nothing to Do with Trump's Tweets

Of course, last week, on June 6, the West marked the 74th anniversary of the allied "D-Day" landings in Normandy, France.

This anniversary, though, was capped off by a G7 summit in Charlevoix, Canada.

Right now, relations – at least, on the surface – between the modern Western allies are mighty frosty, dominated by Twitter and press conference feuds between Canadian Prime Minister Justin Trudeau, French President Emmanuel Macron, and U.S. President Donald Trump, largely over the subject of the multilateral trade war breaking out over protectionist tariffs. Of course, they've largely kept quiet on social media, but it's no secret British Prime Minister Theresa May and German Chancellor Angela Merkel aren't thrilled with Trump's positions, either.

I'm hard-pressed to recall any recent G7 (maybe call this "G6+1") meeting as tense as this one, though a few probably come close.

On the other hand, dispassionate observation and analysis of market action tell us that all this hostility and discord has been baked into prices – discounted.

But our Capital Wave Strategist, Shah Gilani, is watching a "split" of sorts beginning to open up between the United States and the European Union – one that's got nothing to do with politics or soundbites and everything to do with… growth.

I caught up with him to get filled in on the details, but he did me one better…

He told me how to play this emerging situation that's coming and going - there are going to be some pretty big swings...

Trading Strategies

For the Bulls, the Market's "Just Right" This Week and Beyond

Forget about being too hot or too cold, we've got a serious "Goldilocks" market going right now.

Sure, it would be easy to say that the February jobs number from the U.S. Labor Department is arguing that the economy is too hot and all too tempting for the U.S. Federal Reserve to turn off the heat with interest rate hikes. After all, 313,000 new jobs estimated by the survey is a monster number.

And that number gets even better – the trailing two-month revision for January and December boosted the job count by 54,000.

And then there's the unemployment rate calculation that has the U.S. unemployment rate at 4.1% – a 17-year low.

Considering all of this, the bearish argument would say something like, "Well, the economy is way, way too hot, and that's really bad news; it's going to end poorly for the markets."

But let's let those bears stay in hibernation.

Because as we dig further into these the numbers, we find that there's lots to like...

ETFs

Here's How Wall Street's Selling Everyone Tickets on the Hindenburg

Everybody loves exchange-traded funds (ETFs) these days.

There are a mind-boggling 2,000 ETFs, give or take, in the United States today. Roughly 70% of those are equity funds.

The three largest equity ETFs, packed with around 25% of all equity ETF assets, are S&P 500 index funds, like the SPDR S&P 500 ETF Trust.

Now, it's true that indexing gets most of the investment love at the moment, but there's a really brisk business in so-called "motif" or "thematic" passive strategies.

These let investors tap into just about any sector or idea that strikes their fancy.

Of course, you can passively invest in exciting sectors like robotics, defense cybersecurity, or biotechnology, but you can also buy ETFs that invest in faith-based or special-value principles, like veganism (I'm serious) and animal welfare, or social justice.

Essentially, here in the weird year 2018, if an investor can fathom it, there is an ETF that can be created to allow for one-click investing in the idea.

But ultimately, most of the money is flowing into the large-cap indexes.

After all, indexing is the new pet rock/Rubik's Cube/Beanie Baby, and, as such, is the answer to all our investing prayers.

Wall Street is embracing the idea that the unmanaged indexes will usually outperform the highly paid active managers.

Faced with the prospect of collecting low fees, or worse, no fees, even the old-school brokerage and investment management firms are pushing the idea of low-cost index funds to their clients.

It is the ultimate solution (to a problem nobody really has). Like party drugs, nobody can get enough of these things.

Well, when (not if) the market turns and the sun comes up on the carnage, it's going to be much worse than anyone ever realized...

Options

Here’s My Favorite Holiday Play on the S&P 500 Right Now

Every year, around this time, I get hundreds of e-mails from friends, former students, and subscribers wishing me season's greetings… and nervously asking me about the market action between now and the end of the year!

I get that they're worried.

Believe it or not, the Wall Street crowd likes to take time off, too, and that means important trading volume and liquidity can both dry up faster than a turkey left in the oven too long.

So let me show you what's going to happen over the next few days and weeks – the best time to get into your trades, the absolute, drop-dead last day to exit those trades for maximum profit, and – to put some extra holiday-season cash in your pockets – a couple of easy, low-risk plays on the market (and a few select stocks) tailor-made for this special time of year.

Let's get to it! Watch my video...

Market Crash

Are You Prepared for the Next Recession? 3 Strategies for Protecting Your Wealth

The next recession could devastate the stock market, wiping out trillions in everyday Americans' retirement and investment funds.

With potential losses as high as 86% over the last seven recessions, investors and retirees need to have a plan in place in case the worst happens.

We'll show you three defensive strategies for safeguarding your assets during a recession, plus one way to profit if stocks fall...

Trading Strategies

Now That the LAMPP Is Finally Red, Here's How to Make Money

As I reported earlier this week, the short-term LAMPP has turned red. It's only by a hair, but it did cross the line. This is no surprise to us. I have been reporting to you every week that we were getting closer and that a signal change was imminent.

I have been warning you that Treasury supply would soon increase radically. As expected, the federal government is now moving to raise the cash it needs to pay back the funds it raided internally under the debt ceiling and to rebuild cash. The Treasury will issue net new debt of $54 billion over the next few days.

At the same time, buyers of that new debt will no longer have the Fed's help in financing those purchases. In October, the Fed will start draining cash from the system, instead of adding $25-$30 billion per month to primary dealer accounts, as it has been doing lately.

The long-term LAMPP signal should turn red within the next month or so.

What that means is that the market should now begin its turn to the downside… the risk-reward equation has tipped to the sell side… and we will start seeing more and more opportunities to hop aboard the short side for solid profits.

Since you've hopefully been building a larger cash position over the past few weeks, you should be able to make one or more speculative trades to capitalize on the signal change. (Of course, timing these trades will require technical analysis, which I cover over at The Wall Street Examiner Pro Trader.)

But first things first - don't panic...