Leading Off… Easy is the new black

Tim Reazor
Chief Investment Strategist
NorAm Asset Management

You don’t have to make understanding the markets so difficult.  I’ll give you that they are counterintuitive, but days like today –violent 100-point swings – don’t have to wear you out.

How you can trade and invest like we do here at Noram Asset Management?  Learn how to spot sector and subgroup rotation.  Also you need to pay attention to the correlated assets.  For this market the correlated assets are Japanese Yen and Bonds.  If bonds and Yen are lower then most likely you’ll see stock markets move higher.  If bonds and yen are higher then markets will most likely trade lower.

The correlation was in full effect today.  Bonds and Yen were soft at the open; they caught a bid and then started racing higher.  Their peak coincides with the Nasdaq hitting and bouncing off its 200-day simple moving average.  As you can guess bonds and Yen fizzled into the close and markets rallied.

Easy is the new black… it doesn’t always have to hurt to try and make money in the market– open your mind to uncovering the “easy” trade.

The question you now have is how can I make money with this information like we do here at Noram Asset Management. How can I find the “easy” trade?  First you need to know what is correlated.  Secondly you then need to understand how to spot a potential move higher in stocks or an asset class.  For two plus weeks bonds have been firming up.  I’ve been discussing this at length on my radio show and in my weekend update videos.

What’s the easiest way to be a bear in this market without the stress?  Use bonds or bond ETFs like TLT.  If you’d like to know what I expect out of bonds in the near term watch this video –  http://noramassetmanagement.com/wp-content/uploads/2014/04/Meet-Now-4-11-14-6.40-PM.mp4

The last piece of the puzzle is learning how to position your portfolio for the move.  If you’re curious as to how we do this please visit me in my office and trade with me.  I’ll be happy to show you.

To schedule an appointment send me an – Tim.Reazor@NorAmAsset.com

If you’re not in the Dallas/Fort Worth area we can meet online using WebEx or GoToMeeting

I hope you find this information helpful.  If you have any questions or suggestions please let me know.

 

Best Regards,

Tim

 

The information presented is for educational and entertainment purposes only.  Opinions and information expressed are based upon information considered reliable.  However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.  

Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.

 

Investments involve risk and unless otherwise stated are not guaranteed.