Inflation worries are coming back into play as the recent CPI and PPI numbers came in hotter than expected. Ed Egilinsky, Managing Director, Head of Sales and Distribution & Alternatives at Direxion, joins Cheddar News to discuss how traders can take advantage of the changes in U.S. interest rates, and what areas may benefit if inflation stays elevated for longer.

Inflation worries are coming back into play as the recent CPI and PPI numbers came in hotter than expected. Ed Egilinsky, Managing Director, Head of Sales and Distribution &amp; Alternatives at Direxion, joins Cheddar News to discuss how traders can take advantage of the changes in U.S. interest rates, and what areas may benefit if inflation stays elevated for longer.

Ways Traders Can Take Advantage of U.S. Interest Rates 

I want to bring in our next segment trader nation, which is brought to you by direction E. T. S. We explore how investors and traders can position their portfolios for the future with directions, expanded suite of 80 s. Now inflation worries are coming back into play as the recent C. P. I. And P. P. I. Numbers came in hotter than expected. So what does this mean for traders navigating this unpredictable market? Well, joining us now to discuss early trading trends for 2023 is Eddie Golinski, managing director and head of sales and distribution and alternatives that direction. Ed thanks so much for joining us this morning. Welcome to the show. How can traders take advantage of the changes in U. S. Interest rates? Well, you just mentioned that the Fed is actually releasing their minutes today. So that might have some indication of what might lie ahead in terms of how aggressive the Fed will be and then continuing to raise rates. You also have the fourth quarter GDP revisions tomorrow as well. So a lot of bond traders will be looking at those announcements and will trade accordingly. We're seeing a lot of flows right now, both in the bull and bear triple leveraged 20 plus year treasury, which is T. M. F. And T. M. V. Uh, as you know at the start of the year, bonds rally considerably. The month of february that's turned where rates are starting to rise within two and 10 year are now at the highest level since november of last year. So you're seeing a lot of action on both sides of that trade and that's reflected in our inflows year to date. T. M. F, which is the triple leverage full 20 plus years. I mentioned tm V the triple average bear. Both have some of the biggest inflows. We're seeing year to date on the shorter end of the curve. We're also seeing some trades on the 7 to 10 year triple leverage Bull and Bear as well. And that is the T. Y. D. And T. Y. O. As well. But I want to preface that in this environment, this is conducive to short term trading in either direction. You have to be active when you're trading these type of vehicles. Yeah, thanks for the insight there. You know, obviously we've been starting to hear indications from the Fed that they could continue to hike interest rates that they could stay elevated for longer. So what areas could benefit if inflation does indeed stay elevated for an extended period of time? Well, if you look at some of the commodity related equities, we have two times leverage bull and bear on gold miners and junior gold miners in addition to energy related stocks. Uh Two times Bull and Bear as well. Uh It was a very strong year for energy stocks last year. Uh There's not to pull back a little bit. Uh gold mining stocks were mixed down last year. Uh So here's an opportunity for short term traders if inflation continues to trade either side of the market with commodity related equities I will also mention for those strategic asset allocators that are more buy and hold, we have a broad commodity strategy that is tactical in its approach that could be longer commodity if it's showing a favorable price trend but in cash with commodity for showing a downward price trend and that's our com E. T. F. So if you believe inflation is going to continue odds are commodities might continue to rise as well. Alright, so I want to also ask how are you navigating or how our traders navigating volatility with the recent rise in geopolitical tensions, particularly between the US and china. Well when you look at it, there's been a lot of activity in our triple leverage and double leverage china equity related E. T. F. You just mentioned baidu this morning, stronger than expected results. Uh A lot of our traders will trade off that news. Uh We have a triple leverage bull and bear yin and yang of the Footsie Footsie china 50 which biden is part of uh you're also seeing some activity in our two X uh c web which is the chinese internet index with Baidu is included in as well. But when you have this type of geopolitical tension with the chinese spy balloon, how china is interacting with Russia with the Russia Ukraine situation ongoing. It's a fluid situation and traders want to have the flexibility of trading both sides of the chinese equity markets. The one thing that's interesting is I believe last week, the people's bank of china, uh, they decided not to cut rates. So some people are looking at that maybe as a bullish sign that the economy is coming along better than expected with the reopening. Only time will tell with that. Alright, at Glinski, managing director, Head of sales and distribution and alternatives at Direction. Thank you so much for your time and your insight this morning and to find out more about how Direction e. T. S enable you to seek profit and manage risk in all market conditions, visit Direction dot com before investing carefully. Consider a fund's investment objectives, risks, charges and expenses contained in the prospectus at direction dot com. Read carefully.