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Jan. 17, 2024 - Lionel Nation
18:39
Critical Trading and Investment Strategies That You Must Know NOW!

Critical Trading and Investment Strategies That You Must Know NOW!

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I am again pleased and honored to have Bob Cutler joining us right now with TradeWithLionel.com.
This is the...
Just commit this to memory.
Remember this.
Tattoo it on your forehead.
Cut your finger and write it in blood.
I don't care.
TradeWithLionel.com.
Bob Cutler, welcome back, my friend.
Thanks for having me.
Now, let's talk about...
Some interesting transitions and trades and what people need to know right now.
Yeah, I think starting this week, we've been telling people from basically Martin Luther King Day to Easter is a week period in the market normally.
It's a week period in the market in an election year with a first-term president.
And it's also a weakness because we had what's called a positive grinch, meaning that the three days prior to Christmas and the three days after Christmas, the market was green or was positive.
And all those things line up for a weak 2024.
But then we also had a start of the year that was relatively weak as well.
For tens a week, January.
And now we're at a point where you have these contracts that are in the options markets that have been sustaining these markets pretty well since basically the Halloween, November 1st timeframe.
And those go away.
And it becomes what they call a window of weakness in the market.
So I'm expecting a market pullback.
And we're also going to get a bit of a deflationary sniff here.
The Empire State Fed survey was negative.
The oil markets are starting to struggle.
Oil surpluses are starting to show up.
And at the same time...
The bond yields are going higher because the government is basically the only one that has capacity to borrow, or I shouldn't say capacity to borrow, or being allowed to borrow money, but at higher interest rates.
And that also puts some pressure on the market, too.
So we're in a position now where I think you're going to get a bit of a scare between now and the middle of the end of March.
And I think that's going to probably cause the Fed to act and react and start lowering interest rates.
And before people get excited about that, is that when the Fed starts lowering interest rates, remember, everybody since October has been expecting the Fed to lower interest rates, and they shot the market up quite a bit.
You're going to get to sell the news on that, and that's going to cause weakness as well.
So this is going to be 2024.
It's going to be a really interesting year.
It's going to be a lot of volatility, but we're going to be rolling out of this positive vibe into a negative vibe.
And the positive vibe this year so far has been pretty weak, and it should have been a lot higher, and we didn't get it.
Companies are laying off.
Profit margins are expected to be higher, but they're not coming in higher.
Citicorp just reported, and there were earnings results for a disaster.
And usually they're the guys that are the most aggressive on what's called on the bottom tier.
And so they're kind of canary in the coal mine to me.
Look at J.P. Morgan being most pristine.
You know, Citicorp will basically take home any drunk person at the end of the night.
And they're starting to show up in their financials.
Now, if someone right now, Bob, were to contact TradeWithLionel.com, just heard what you said.
Realize this, oh my god, I've got to do something.
Are they in luck?
Tell them what you will do, how they will position, and how they will benefit from your genius and your foresight.
Yeah, so they won't be in luck, they'll be in skill.
So what are trades you could take in this environment?
I think we're going to go into an environment where...
Bond yields are going higher.
Stock market's going lower.
Energy market's going lower.
So there's very few places to hide.
But there are some places that do well in this environment.
And we have algorithms that are looking at those stocks and those sectors right now.
And as they give buy signals, we go ahead and we enter those trades.
And so we would be putting our subscribers in position to be notified when those signals hit.
And they can take advantage of it.
At the same time as we teach them how to use the signal, we give them access to the signal so they can trade whatever the heck they want.
And then they can be in a chat room and communicate with me and some of my other traders.
And so you have an environment where you can actually type chat or you can join a room where you can talk like you and I are talking.
Now, is it safe to say, Bob Cutler, that whenever something goes down, something goes up, that catastrophe in one particular sector means necessarily opportunity elsewhere?
You never sit back crushed by the news.
You merely reposition your tactics and strategies.
Is that correct?
Is that a safe way to analyze it?
Yeah, except that there's a bit of an anomaly here.
Everything can go down.
Because, you know, the market is basically being puffed up through derivatives and the derivatives can disappear.
It can be like Wile E. Coyote, right, going down the, falling down into the canyon.
However, you know, the place you're going to protect yourself in that environment is, you know, you have short-term treasuries that are nearly 5%, okay?
You can go away for a year and come back 5% richer, okay?
That's an environment that might be deflationary.
That's a good trade.
You know, you could just simply be in cash and get 1% or 2% and just say, I'm just too scared to do anything.
But the treasuries are protected by the government.
If the federal government was at risk of default, we'd be in a lot bigger trouble than worrying about you and I talking about the stock market.
So that's a safe place to be this year.
And then there's a couple of stocks in a couple of sectors that go up.
99% of the market could fall, and there could be just two or three places to protect yourself because they just keep pumping it up, pumping it up.
I was explaining to the subscribers in my room this morning is that if you ever walk on the beach in the morning and you notice there was a high tide overnight and there was all the seaweed and the shells and stuff that are sitting up there, but the water is way back, far away from that area, is derivatives will push values up like that, but it's artificial.
And it's going to hold itself until people start saying, hey, I think I need to sell.
And then those prices will come all the way back down to where that low watermark is.
So that's why these markets, sometimes when they fall, they can take three to four months to go up, and they can fall in two or three weeks because there's nothing really holding it up other than inertia.
And once selling begins, selling begets selling.
And I think that's what's going to happen here.
I think we're going to have a bit of what they call an Eiffel Tower effect where you climb up one side of the Eiffel Tower and you're going to come back and you're going to almost get back to the bottom again.
Usually we trace about three quarters of the move, if not a little bit more, in these environments.
And I think that's probably going to be the case here too.
I find derivatives fascinating.
I've been reading about them for the longest time.
How perilous, how scary, and how...
They're almost like the abominable snowman.
People, I speak to people, I think, here in New York are pretty much into it, and they don't, I mean, they know the concept, but they don't know the threat of it.
Let me ask this question.
How much does, or does this calculate, political tumult?
We've got a lot going on right now.
the Iowa primary, and this and that, and Trump and Biden, and the Middle East and Israel.
Do you look at that differently than the regular news observer?
How do you incorporate that into your predictions and the like?
I'm interested only in the sense of how it affects energy and how it affects shippers and things of that nature.
You know, the United States, obviously, unless we start getting terror attacks here on our soil or somebody invades us, war is kind of like a...
TV program to us.
So it doesn't really affect the traders so much.
But, you know, once the war in Israel began, you know, we knew the shipping stocks were going to go higher.
You know, and then once the Houthis tried to take advantage of the choke point there, then they really took off.
We took advantage of that.
Okay, and that's still there.
And, you know, Russia cutting off energy supplies to Europe, that makes U.S. liquefied natural gas very...
Very profitable.
And we don't so much buy that as much as we buy the shippers that get it there.
And that's been a profitable trade for us.
So I look at it in that sense.
Most of the time, the news is designed to actually get you on the wrong foot.
Because these stories aren't organic.
They're delivered.
And so, you know, you're going to, you know, and you being an attorney, you understand you're leading the witness here a little bit, right?
So you want that witness to say what you want it to say.
So you're preparing a story or a narrative.
And what you see on TV, these are the stories and the narratives that try to get you going in a different direction.
Now, on the political front, none of this really matters.
It's all about how much money is being shoved into the system.
If it gets to the point now where they think either Biden won't run again or is unable to run again, then they're going to evaluate who that other person is and then understand where their priorities are and people will adjust, assuming that that person has a good shot of winning.
And people think Trump's going to get in, they're going to go back and look at the 2016 and 2018 playbook and see what went well there and people will start positioning there.
My personal view is that Biden won't be the next president, but I can't say with 100% certainty that Trump will be.
So you have to keep your eyes open.
And the only reason why I say that before we get any hate mail, I just don't know what they're trying to do.
They got on the legal front, okay?
You know, to force something.
And so that's my only get-out-of-jail-free card on my prediction.
But if it is a straight-up race and they get their arms around the election integrity in these four states, then I think Trump has a good shot at it.
But he might be deflationary and he might cause the markets to sell in 2025 because he's going to enact reforms.
So that's how I look at it.
Right now I'm not really paying too much attention to it.
There's no doubt in my mind Trump's going to be the Republican nominee unless they throw him in jail somehow and they keep him from...
Being in a ballot, and then you'd have to look at DeSantis as definitely the frontrunner.
But I don't think Biden's going to make it.
I just don't know whose place is going to be.
And I'm not saying that because I love Biden or hate Biden.
No, I understand that.
I think he's increasingly impaired.
No, I understand that.
You know, the thing I love about talking to you, Bob Kudlow, again, tradewithlinel.com, we'll explain that in a moment, is you're the radiologist.
And you look at it, it's broken.
Pregnant.
That's rabies or whatever the particular...
And you're not saying, I'm glad it happened.
I don't know.
I'm looking at what this plus this equals this.
And I'm not here to tell you anything more than that.
In fact, sometimes I think financial...
Reviews are the best means of looking at politics and the like.
Now, somebody right now says, I love this guy.
He knows what he's talking about.
You don't hem and haw.
You're not like some of these folks on some of these financial shows.
I don't want to mention their names, but your advice has always been, don't watch them.
Nobody in the biz really watches them.
Is that correct?
I don't want to mention names.
You know who I'm talking about.
Yeah, I mean, look.
Well, you know, I'll mention the name is Jim Cramer is obviously a brilliant guy, and he's done really well for himself and his personal investors when he had a fund.
But he's now a TV entertainer, and he brings people on the show because a lot of people, they pay access fees to be on these shows.
As you know, you're in the entertainment business.
Yeah, I am.
You know how that works.
And so, you know, but also, too, the producers of the show have a certain narrative.
The owners have a certain narrative.
And, you know, if somebody's on the show selling you something, okay, they're selling what they own.
Right.
It was so great they wouldn't be selling it, right?
That's true.
Yeah, you know, so I mean, so that's the argument is that usually when somebody's on the show, you know, like, you know, I think Goldman Sachs is classic.
You know, they...
They tell you oil's going to $200.
What did oil do next?
It went to negative $58.
Now, are people at Goldman Sachs stupid?
I don't think so.
I guarantee you they probably weren't along the market.
It's just that they need to provide liquidity for their customers to exit that trade.
The only way they can do that is to get you to buy it.
You know, that's so interesting, and to you it's probably not a very profound statement, but when you sell something in the real world, when I have a product, I want to sell it because if I sell more of it, I make more money, and it's a product I love.
In your world, if somebody wants to sell it, there's something wrong with it.
I want to get rid of it.
It's a different perspective, and I want people to remember that.
Now, Bob Kudla, somebody says, okay, trade with Lionel.
I'm going to go to the website.
What do I get?
Tell me what you can offer and why they should act immediately.
Yeah, so what we did for you is that we created some really, really highly discounted service levels, a basic package and an advanced package where people would then get certain levels of indicators depending if they're a swing trader or a day trader or an options trader and things of that nature.
So you have two choices.
They're discounted.
Even more than what is on my site, and we do discounts a lot for people.
We always run promotions here and there, but your prices are below that.
And so people can take advantage of that, and what they get is they get the indicator packages, they get access to the trading room, access to the chat room, access to the indicator, and also I put trades out every day, pretty much.
And so you get all that for that price, and the price I charge for the service is nothing.
You could buy, you know, a half a cup of coffee a day, and you still would be at the same price using my service.
So it's really, really inexpensive, but you're getting a lot of value out of it.
And, you know, if you go to our site, our track work is out there.
We have a lot of attaboys.
If people need to see that next time we talk, I can definitely put a page together to show you.
I get them every day, you know, how we help people be successful in the market.
And the thing is, I just want to be really clear to people is that, I'm not promising the moon.
I'm not touting any one thing or another.
It's hard work.
It takes discipline.
We're going to give you the tools to be successful.
And you're going to grind your way to wealth over time.
That is so terrific.
So Bob Cutler, they go to TradeWithLionel.com.
Is there a particular number or something?
And everybody who does call, you should always mention they heard it here on the Lionel Show, Lionel Nation.
But any other, the ways that they get a hold of you, what's the best way, sir?
Yeah, you can go to TradeLikeAGenius.com or TradeGenius.co or 1-800-949-1408.
But yeah, if you do come in and you talk to Matt, my sales guy, just let them know you heard it here so I can apply the right discount and also support Lionel's show.
Well, Bob Cutler, as always, it is a pleasure.
I always learn something.
It is fascinating.
The actual math, the physics, the gravity, the momentum of trade, and the whole shebang, as they call it.
And nobody does it better than you, sir.
Bob Cutler, TradeWithLionel.com.
That's the only name you need to know.
Thank you so much, my friend.
Let us talk again soon, sir.
Thank you.
Have a good one.
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