Futures Trading: The reflation trade is back | Simpler Trading - YouTube

Hey traders Raghee here and in this video we're  going to talk we're actually going to come back  

around to a conversation that we've been having  quite a bit in these in these video updates and  

that is let's not forget about reflation and  it's amazing how quickly the market sort of  

loses the focus on reflation when the triple  Q's took off we saw some momentum in tech  

but you know yes it took some of the luster  off this trade and this was moving sideways  

but today we're finally seeing that crude oil  market break out of the range and this has  

been a play that is well in many ways reopening  related because we can talk about gasoline in that  

regard it's definitely reflation related it  doesn't hurt that the US dollar has been rolling  

over some so that sure you know won't hurt  that there's been some weakness in the dollar  

and ultimately what we want to remember  is where all the different where all the  

different ramifications for this are so this  is not just a trade for futures traders this  

is a trade for stock traders as well when they're  focusing on energy stocks when they're focusing on  

you know what is going to move higher as crude  moves higher and I think today's moving crude  

while we might see a little bit of  a stall or an inside day tomorrow  

what we were able to get some escape velocity from  was this volume node right in here this volume  

I like to call them ledges right that volume  right in there very interesting two points of  

control and we've been stuck gravitational pull  and then boom we were able to explode out of that  

and so the idea here is now where can we go you  know what's what was what would be the next target  

to the upside and I'll start looking at some swing  highs gang that's what I'll be looking at what are  

some of the swing highs that we can focus on  from here but I am looking eventually for this  

market to retest at least the 65 area and maybe  even start making a run for 68. okay and that's  

going to be on crude oil what is that going to  mean keep an eye on your oil stocks keep an eye  

on Schlumberger, Halliburton, Exxon, Chevron keep an eye  on explorers and don't just start at the  

heavily weighted stocks of these ETFs but  go down the list a little bit you know go  

see what else is in play when you look at the  XLE beyond Chevron and Exxon you know what else  

is on that list EOJ, Schlumberger, Marathon. Marathon is  actually a position long that we have in Sector  

Secrets so a lot of you that follow the future  as you'll know there is impact on the underlying  

the underlying stocks or the stocks that  are tethered to that narrative here's the  

here's a trade on marathon just a quick move to  the upside after we scooped that up yesterday  

so yeah these are going to be related to crude  and I think when you understand what currencies  

and commodities tell you a futures first mindset  it opens the rest of the market up in a way that  

it wouldn't that it couldn't if all you were  looking at was stocks and stocks only okay  

so keep that in mind I think the edge that you  get as a futures trader is tremendous the edge  

that we have in reflation with long copper long  crude long gas we're going to talk about copper  

gold silver bonds and the Canadian dollar in the  premium video lots to like in this market gang and  

also for those of you that are looking at say YM  and transports and industrials let's not forget  

the Dow futures the Dow and the heavily  weighted sectors within it are going to  

still be disproportionately benefiting from the  reflationary environment and if you wanted to see  

if reflation is back look no further than  crude and copper all right I'll see in the  

next update without Simpler Trading I could not  have financial in the past this is one of the best  

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