Two Trades for Turbulent Markets (w/ Christian Fromhertz) | Trade Ideas


Welcome to Trade Ideas. I’m Jake Merl, sitting down with Christian
Fromhertz, founder and CEO of the Tribeca Trade Group. Christian, great to have you back on the show. Great to be here, Jake. So, what’s your take on the market right now? We’re currently trading a couple percent below
all-time highs. We saw a big move down over the weekend into
the open on Monday, stocks then reversed and powered higher. And now we’ve sold off again. So, what do you think, Christian? Are you bullish or bearish here? Yeah. And I think that we’ve kind of moved back
into a little bit of a headline driven market, something that we haven’t really had to deal
with in a couple months. But here we are again. So, I think right now, there’s a lot of good
things to be bullish about this market. But we’ve really come to a place very quickly,
right? And really, without any digestion. So, now that we’re getting a little bit headlines,
I think it makes sense for us to digest some of those gains. I think it could have been anything that would
cause us being that we would have moved up so fast, any negative news would have brought
us into some consolidation. So, I think this is a good place to be. As long as we hold support, I’m still very
bullish for the year. So, how do you suggest playing the current
market environment? Yeah, what’s nice is that there’s always different
trades and different groups that we can add on for this type of market. One of the trades that I like right now is
the CME. I think this is a great way to express maybe
a little bit of short-term volatility. If you look at the chart, the weekly chart
I like specifically, it’s been digesting over the first part of the year. And it just reported earnings. They also just recently come up with a new
product, which really caters to the retail investors, which is the micro minis, which
allows retail traders to get a little bit more comfortable with trading futures. So, I think this really makes the pie bigger
for them in terms of their product scope. And if you look at the technicals, which I
really like right now, as long as it closes above $178 this week, we’re showing that it’s
breaking a downtrend line and can move back to that uptrend and possibly back to 52-week
highs. One of the things that I rely on is value
areas, and I’m looking at basically last year’s volume at price. And I think $178 is really a key area with
that down- not only with a downtrend line, but also looking at coming into really nice
to find support. So, as long as it holds $178, I think it could
go ahead and retrace some of the levels that it got below this year and possibly break
back to new highs. I think it’s a great play on volatility. And they’ve got a couple catalysts working
for them. And also, you’re not buying something right
at 52-week highs, you’re buying something that has been digesting for the last three
or four months. And it’s now just starting to look attractive
again. So, what key levels are you looking at? So, again, I think that $178 levels is a perfect
line. And again, that would be at the end of the
week, because I’m looking at the weekly charts, so longer-term chart. And then also, it just reported earnings. So, you don’t have to worry about any stock
specific events. Do you have a target price on the upside? And what, do you have a stop loss on the downside? I would say use the stop- always talk about
the stop price first, so below, I would say $177 would be your stop price, and maybe taking
half off at the 52-week highs and then letting the rest go further up. And what would you say is the biggest risk
to this trade? I would say if it just happens to break back
into below support. So, this way, it’s a very technical trade. And so, let’s say we don’t get a trade deal
by Friday, are there any other stocks you’d be looking to purchase? Yeah, I think what’s always interesting is
when market volatility creeps up, it seems like everything gets sold off. And it really if you’re a single stock trader
and open to putting on a little bit of alpha, you could start to look what names considering
everything goes down, there’s some really good buying opportunities. If the trade deal by chance does not happen
on Friday, which looks like it’s getting to be more of a distant probability or possibility,
then I think some names that have their business more focused domestically can really outperform
in that type of market. One of the names that I like as well as Home
Depot. I’m sticking with the weekly chart. I think Home Depot has sold off a little bit
and can really- if it holds in here, you’re looking at a possible cup and handle pattern. So, as long as that holds $197, I like that
trade. And do you have a target price for that? I think in the short-term, $210. It does have earnings in a couple weeks. So, if it happens to rally back up to around
that level, I think that would be a great place to take some profits off before they
report earnings. And what about a stop loss just in case things
don’t go your way? I’d say $195. Well, Christian, that was great. Thanks so much for joining us. Thanks for having me. So, Christian is bullish on the CME Group. Specifically, he likes buying ticker symbol
CME at a weekly close above $178 with a stop loss at $177. His target price is $195 over the next six
months. In addition, Christian is bullish on Home
Depot. Specifically, he suggests buying ticker symbol
HD at a weekly close above $196.80 with a stop loss at $195. His target price is $210 over the next three
to four months. That was Christian Fromhertz of the Tribeca
Trade Group. And for Real Vision, I’m Jake Merl.

4 thoughts on “Two Trades for Turbulent Markets (w/ Christian Fromhertz) | Trade Ideas

  1. The bull market will last another 242 years and 3 people will own 186% of the world's wealth. You heard it here first

  2. I like it when you give specific examples… that takes huevos… we’ll see…
    Dark Trade
    As tensions rise… as 5,200 American troops in Iraq are exposed and vulnerable to Iranian financed Terrorists. As Mike Pompeo secretly flies to Baghdad to remind Iraq America will protect their sovereignty. As Israel and Hezbollah, backed by Iran, are at it again in Gaza. As missiles are flying civilians are dying. As Palestine and Israel are celebrating a marriage made in heaven, as in true love never dies. As they are escalating a 2,500 year lover’s quarrel. As the USS Abraham Lincoln loaded with 80 fighter jets and missiles, along with a back up fleet of killing machines approaches Iran. As trump puts multi level pressure on China in trade talks. As high oil squeezes China’s slowing economy. As I dream of paranoid scenarios. As oil prices are positioning to possibly blossom. As Mullah Rouhani tells Europe that Iran will Begin building stockpiles of low enriched uranium and heavy water as sources for bomb grade plutonium’ needed make nuclear bombs, unless Europe lifts America’s oil embargoes on Iranian oil in 60 days. As Iran reopens construction on Arak Nuclear Reactor. As Netanyahu states emphatically, “We will not allow a country that wants to kill us have nuclear bombs.” As John Bolton a perennial fan of taking down Iran’s mullah regime is newly installed National Security Advisor. As the Tail the Wags the Dog principle comes to mind as Trump is besieged. As I seek solace in profit. As the controllers of world warning systems are put on Red Alert with their fingers on activators.
    As I have my finger on buy CLM19 (June oil) as I watch the ticker and the news. Oh you wicked opportunist you. Who me? I’d rather peace prevail. As opportunity knocks.
    1 CLM19 contract is $3,800 to control 1,000 bbl of crude oil. A $1 increase or decrease per bbl in oil translates to $1,000 profit or loss per contract. Holding 2 contracts of CLM19 coupled with a $10 crisis rise in oil gets you $20,000 in a week or less if timing of your edge is right.
    It’s not for weak hearts. Risk is involved. It’s a dark trade. The irony: profit and war. I ask myself… who can unveil the future?
    All the while hoping for world peace. Time will tell. Let God sort it out the future is beyond mere mortals. It’s a long hard ride… coming home soon mama…
    ———————-

  3. What about the idea of bitcoin as an electronic store of value? It has officially doubled off of the bottom in December. I think this should be talked about and all the potentials of it

  4. I missed the trade but Christian was right, it was a good trade, congrats

Leave a Reply

Your email address will not be published. Required fields are marked *