Who gets the check…
Yesterday, President Trump called for an end to all stimulus check negotiations until after the elections, but he quickly changed his tune…
At 9:54 PM last night, Trump urged Congress to immediately approve a $25 billion airline stimulus package. He also requested a $135 billion stimulus package for small businesses.
And the markets reacted immediately.
When Trump first tweeted that he was going to cancel all stimulus negotiations until after the elections, the market absolutely tanked.
The Dow closed yesterday down 376 points.
But following his airline tweet, naturally the market bounced back, and the big winners are the airlines.
Where’s the money?
It’s not surprising that stocks all across the board have shot up today.
At the time of writing, the Dow rose 1.5%, the S&P 500 rose 1.3%, and the Nasdaq rose 1.5%.
But airline stocks have soared since President Trump tweeted his $25 billion stimulus plan.
United Airlines rose 4%, American Airlines rose 3.7%, and Delta Air Lines rose 2.7%.
Trump’s tweets show that lawmakers are still struggling to reach a deal about the size and composition of a recovery package. And as Trump fights off the coronavirus, there seems to be no agreement in sight. This lack of stimulus checks for the average citizen is continuing to cause disposable income levels to drop.
And if this continues, the lack of consumer spending could destroy your portfolio. Here’s how you can position yourself to not only protect your wealth from an impending fallout – but also profit from it…
How can I get some?
When it comes to a volatile market it’s important to have both long and short positions.
This way, you can make money no matter which way the market moves.
Remember, stocks can only move up or down, and if we have both long and short positions it allows us to make money no matter which way it goes.
And of course, buying a stock when it reaches a high is never good for your trading game.
That’s why I’m waiting for a pullback before I get into any airline stocks, and when I do, I’ll be looking to balance my position with an opposite move.
By doing so, it helps you balance your risk and profit no matter which way the stock goes.
So when it comes to these airline stocks, the moment you see a pullback is the time to make your move.