It was a big weekend as Congress finally got the $1 trillion bill passed and now the markets get to sink their teeth into it. As individual traders, we have to find the best way to get our share of the payday.
We have looked at some ways to trade the bill in the past (check out the articles here) but here is a quick recap.
With a shortage of this critical resource and the fact that it is an important element of a lot of the new technology used to upgrade infrastructure it seems like a logical winner now that the gridlock is broken. Ian Cooper recommended Global X Copper Miners ETF (COPX) as a smart simple way to grab this wave.
There will be a big push on transitioning to solar and this will add to momentum this technology has already been experiencing. A couple potential winners to trade this aspect of the new bill are First Solar Inc. (FSLR) and the ETF (TAN).
In addition to solar, the old school elements of construction and the related materials stand to see a nice lift. Here are a few to keep an eye on. Vulcan Materials (VMC), Fluor Corp. (FLR), United States Steel (X), Caterpillar (CAT), Nucor (NUE), and Freeport McMoRan (FCX).
All of this work is going to take fuel and with a potential spike in demand, issues with delivery and prices already on the rise, oil is also in the crosshairs for a great trade. Consider VanEck Vectors Oil Services ETF (OIH) as an likely grab.
There are also the simplest way to trade this news by using the Infrastructure ETFs like SPDR S&P Global Infrastructure ETF (GII), the iShares Global Infrastructure Index ETF (IGF).
As you look at these potential breakouts from the bill, be sure to review your strategy for managing risk and accelerating the returns. Chuck Hughes’ Option Trading Made Easy is a great starting point and refresher. You can grab a free copy here.
Keep learning and trade wisely,
Market Wealth Daily
PS-Interested in live training with legendary trading champion Chuck Hughes? He has opened up a very limited number of seats in an exciting new program. If you’d like to get in on this rare opportunity, click here for more info.