Update - December 8, 2020

Volume Is Surging… and Our Shares Will Follow

It’s a great time to be an investor.

Every single one of our stocks is up – new ones, old ones… They’re all rising.

Most, in fact, are up by double digits.

But there is a laggard. It’s up by only a handful of points since we got in.

Let’s talk about it.

A Wet Future

I recommended shares of CME Group (CME) based on two things – rising trading volume across all markets and future inflation expectations. The latter is why the stock is featured in what is now dubbed our Dow 100K Portfolio.

Some recent headlines prove the thesis and underline why this position is a stellar long-term play.

I’ll start with some big news from the world of water.

For years, my colleagues and I have studied the growing water wars in this country. As populations spread out and industries suck up more and more water, the fight over who owns what has been brewing for decades.

It’s far from over.

But thanks to CME Group (and good old-fashioned capitalism), there’s a new way to help alleviate the fallout from the fight.

It’s now possible to trade water futures… just like we can trade oil, gold, corn and nearly every other valuable commodity.

This is a big deal for many in the industry. It means big consumers of water – like farmers, manufacturers and even power companies – can now hedge against major moves. They can solidify their prices and worry about building a strong business… and not worry about water prices.

But there’s something else this new product from CME Group will do. It will give the world a transparent look into the woes of the water market. We’ll now be able to see prices rise and fall. We’ll be able to see the effect of shifting populations. And we’ll be able to see what new laws and regulations do to this critical, yet previously opaque market.

It’s good news.

But perhaps the biggest win is what this new futures product means for inflation. It gives us yet another tool to gauge and, ideally, hedge against rising inflation.

Rising Prices

We know that as inflation fears begin to rise, demand for products like this will soar… and CME Group’s profit will go along for the ride.

We’re already seeing it.

The company just reported its November trade volume. And as our thesis tells us to expect… volume was up.

In some cases… it was way up.

Foreign exchange volume was up 10% from a year ago.

Ag volume was up 10% too.

Metals volume was up 12%.

And, get this, equity index volume surged an incredible 98%.

It makes perfect sense. As zero-percent interest rates and trillions of dollars’ worth of free money send ripples throughout the economy, investors are doing all they can to minimize their risk and hedge against great uncertainty.

Owning shares of the company that makes it possible is a very wise idea.

CME Group isn’t soaring yet… but it will be soon.

If you don’t own shares, take this opportunity to buy some.

The No. 1 Metric

The company’s November report proves that tracking volume is one of the greatest (and simplest) ways to sniff out the market’s biggest opportunities.

Using volume as our guide, we see that the ag industry is quietly heating up… the forex and the strength of the dollar are on the minds of investors… and metals volume is telling us inflation fears continue to grow.

In fact, in my Alpha Money Flow research advisory, where volume forms the base of our analysis, we used a quick surge in buying pressure to uncover a big profit opportunity in Stitch Fix (SFIX).

You may have heard the company in the news today. It reported blowout earnings last night.

The stock jumped 43%.

Our shares are now up by more than 150%.

It proves, once again, why it’s such a great time to be an investor.

Free money is flowing… volume is soaring… and stocks are rising.

CME Group is at the center of it all.

Buy shares while they’re cheap.

P.S. I’d love to hear how your portfolio is doing in this crazy market. Send me your success stories at mailbag@manwardpress.com.