Investors Await The Next Market Catalyst

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET]( [Shadow] Hello investor, The hype surrounding AI has settled down for now. Stocks are back treading flat. The next catalyst may be the Federal Reserve’s meeting on Wednesday, where they will decide the next rate hike decision. A pause is expected, but incoming economic data can change things before the meeting. We will get the latest numbers for initial jobless claims today and the CPI number next Tuesday. For now, traders are pricing in a 66% chance of a pause, according to the CME FedWatch Tool. - “We’re in a bit of a news vacuum: Earnings are done, the debt ceiling is resolved, and we’re waiting for the Fed next week,” said Barbara Doran, CEO of BD8 Capital Partners. - “It’s widely expected they will pause, but it’s really going to be important what their guidance is and what the [consumer price index] number on Tuesday will be and the [producer price index].” (Photo: Barbara Doran, CEO of BD8 Capital Partners) Bonds are falling: The sentinment in the global economy is for central banks to go hawkish again. Meaning? Possibly more rate hikes. As a result, shorter-maturity Treasury yields almost hit their highest since March. The rapid moves came after the Bank of Canada followed the Reserve Bank of Australia with a surprise rate hike this week. The reason behind the hike is simple – inflation remains stubbornly high. So, traders are rethinking their bets that the Fed Reserve could cut rates as soon as this year. - “The Reserve Bank of Australia defied economist predictions to increase the cash rate again this week, which may put more pressure on the European Central Bank, US Federal Reserve, Bank of Japan and Bank of England,” said Colin Graham, head of multi-asset strategies at Robeco. - “Expectations for July have now shifted from an expected cut to an expected rise” for the Fed, he said. Traders think Europe will hike rates even further than the US. They price in 50 basis points worth of hikes in the next three months for the ECB. - The ECB is “behind the curve in terms of inflation pressure, in terms of rates,” said Guy Stear, head of fixed income research at SocGen. “They have to keep going.” The Sneaky Play On The Megatrend of Going “Green” Today’s Stock Pick: Trane Technologies ([TT]( The trend of going “green” is hotter than ever. Many companies are committed to becoming energy efficient. All the hype is largely focused on electric vehicles, but there are other industries that are terrible offenders of generating emissions. Take heating and cooling buildings. Did you know that heaters and A/Cs are responsible for about 15% of global emissions? That’s a massive number! Additionally, food loss/waste accounts for about 10% of emissions. (Source: Trane Technologies) This makes Trane Technologies a sensational pick because it designs and manufactures HVAC equipment and transport refrigeration that is environmentally friendly. As a result, their products are flying off the shelf as companies scramble to reduce their carbon footprints. In fact, if things remain the same, HVAC and Food Loss would be responsible for as much as about 35% of global emissions! (Source: Trane Technologies) Therefore, it is inevitable for Trane Technologies to enjoy a long tailwind of growth. Its franchise brands include Trane (commercial HVAC), Thermo King (transport regrigeration), and Trane/American Standard (residental HVAC). (Source: Trane Technologies) A proven moneymaker: Trane is NOT a “charity” where it is trying to achieve something good while being unprofitable. Nope. It is a proven moneymaker. Between 2016 and 2021, it increased dividends by ~12% CAGR! …bought back ~$4.3 billion in shares – or more than 10% of its market cap! …spent ~$2.6 billion on 26 acquisitions to drive its revenue growth. (Source: Trane Technologies) Trane is doing the right things to grow its business profitably. And would you like a sweetener? It is laser-focused on cutting costs to boost its earnings. In just one year from 2020 to 2021, it increased its transformation savings by nearly two times! Trane sets a goal of hitting ~$300 million in savings by 2023: (Source: Trane Technologies) What is the natural consequence of these savings? Operating leverage! Trane’s most recent quarter had a 19% organic y-o-y revenue growth. Pretty decent, right? Thanks to its ability to grow without ramping up costs too much, its earnings growth was magnified. On a revenue growth of 9%, its adjusted EPS grew by 26%! (Source: Trane Technologies) More share buybacks: Clearly, this is a business that spits out cash. Trane will do a LOT more of share buybacks. It has a whopping $2.9 billion in remaining authorization! That’s a little over 7% of its market cap. Moreover, the company just raised its FY 2023 guidance to revenue growth of 7% to 8%. The EPS will do even better due to its operating leverage. (Source: Trane Technologies) Bottom line: Trane is playing in the MASSIVE industry of HVAC, and the commitment to go green will only turbocharge the demand to replace old HVAC equipment with environmentally-friendly ones. Best of all, Trane has a long track record of financial strength and returning cash to shareholders. This is a powerful combination. Trane could be the next decade’s superstar, so buy and hold this stock immediately. FREE LIVE TRADING SESSIONS & TRAINING USING THE MOST COMPREHENSIVE DARK POOL MONITOR AVAILABLE TO THE RETAIL INVESTOR Join our LIVE Trading Sessions throughout the day where we will focus on how you can learn to master the markets through the use of advanced algorithms and AI to trade like the institutions. BEFORE THE BELL Starts 6am PT / 9am ET Our newest LIVE session starts when the big institutions and elite traders do, well before the market opens. We'll look at realtime dark pool data as the market movers position themselves for the tra ding day in the secret off market exchanges. LIVE TRADING SESSION Starts 8am PT / 11am ET Take advantage of Trade Algo's proprietary advanced algorithms for anticipating big market swings in our daily LIVE trading session. Trade Algo's Senior Analyst Luke Russell will walk you through the key tools and strategies that the institutional investors and top traders use to profit from high volatility in the market. THE FINAL HOUR Starts Noon PT / 3pm ET According to Wall Street Journal approximately 20% of the trading volume happens at the last 30 minutes of the day. Institutions make the majority of these trades in private dark pool exchanges -- away from the public’s eyes. The timing happens for two reasons: 1) Index funds make their trades to mimic the closing price of a stock. 2) Billionaires trade near the end of the day because they anticipate major news that will be released during after-hours. Because they trade in dark pools, the public doesn’t know about these trades until one day later. We’ve consistently spotted the correlation between a spike in dark pool volume at the end of the day and the next day’s price movement. In the Golden Hour we will identify and analyze these movements so you can trade with confidence. CATCH THE SPARK Starts 4pm PT / 7pm ET Catch The Spark is led by trading expert Luke Russell, starting at 4pm PT / 7pm ET. Open to all this session is a recap of the day and a prep for the next trading day with an emphasis on identifying and examining "spark" orders, those large institutional trades taking place behind closed doors in off-market exchanges, that drive stock movement. Bring the stock or options trade you've been waiting to make and we'll show you the information the hedge-funds, big institutions and top traders use to evaluate and time the trade. [REGISTER NOW! IT'S FREE]( OR [SCHEDULE A LIVE ONE-ON-ONE DEMO!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](