Inflation isn’t letting up. Housing is in a transition. Congress can’t get it together. The angst we have seen for the last 12 months is here to stay. But there are a couple places likely to see some positive moves.

Clean energy is seeing a wave of growth and support and manufacturers are scrambling to keep up. While solar and EVs are a huge part of this, almost all efforts related to green growth point to one thing. Lithium. Everything is becoming more and more dependent on batteries and Lithium is the go to element to use currently. In fact, when you look at the lithium ETF (LIT), it is signaling a couple powerful signs.

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We see support starting to develop after a run down that seems to defy logic. We also see the MACD starting to curl up offering a promising sign that it is trying to reverse. Add to all of this that the MACD is well into oversold territory, it sets up the potential for a nice move up.

Another area that is likely to see some positive moves over the course of this year are pot stocks. More states legalized recreational marijuana in the last election and the support for this to become federally legal is strong.

Again we see the MACD curve upward and ready to cross in oversold territory but we also see a move across the 10 day moving average which signals a breakout upward.

These are two plays that really show potential in what is lining up to be a tough year.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily