A theme that we’ve been working with over the past few weeks is to stay away from the Fed’s line of fire.
The saying “don’t fight the Fed” is pretty apt here… but not in the way that most people mean it.
We’re not looking to put ourselves on the same side of the boat with Powell and other vaunted experts in the bureaucratic state…
Instead, we’re looking to avoid catching a stray bullet by being in a trade that’s going to be extra sensitive to the Fed’s wiles.
We just kind of want to play “peek a boo” by finding good plays that can catapult off of their base… without getting involved in overleveraged names.
One play we’ve been stalking for a few months now is PTON.
It’s shown signs that it could pop out of its base and start a strong upswing…
It just needed the right catalyst to kill that post-COVID hangover it fell into…
A strong earnings call recently might be the “hair of the dog” it needs to jump out of bed and start its day.
The big takeaway from this chart is the target.
We have two Lodestone Levels forming right now -- the first at 24, and the second at 27.
If the stock runs to the upper level then that’s a 172% return on the stock, and the option potential is 1,164%.
This is a little bit of a David Blaine style “misdirection”... as most investors are trying to find the bottom in overleveraged tech stocks…
We’re going to look for plays in stocks that other investors have “lost that lovin’ feeling” for.
They’ll rally stronger on any good news because fewer people own them…
And they won’t be as susceptible to the “Slings And Arrows” of a Hawkish Fed.
If you want to know more about these Lodestone Levels… and how we play to play underloved names for massive gains to round out 2022: