Daily Forecast 4/15/20

We normally do not trade the restaurant sector but the leverage and upside of BLMN could not be ignored. Please refer to the public blog for some background on BLMN if interested. On a corporate front, today, the CEO of BLMN was one of a handful of restaurant CEO’s to meet with President Trump at his Economic Council on re-opening the country. Also, days ago BLMN announced a strategic change to its business model by incorporating a fast-casual dining experience called The Aussie Grill. This will be a stand-alone concept and store add-on to their current platforms. The first two are opening in Florida this month catering to the fast-casual diner at a lower price point. They announced plans to increase their current expansion into South America in 2020. Both of these are excellent developments in this post-pandemic world. Price swings will be large until America opens back up. Although we forecast possible weakness in the stock market into next week, it's possible BLMN bucks the trend as it opens many of its 1000 chain locations in largely unaffected states. According to the President at Tuesday's press briefing he indicated half the country is ready to open up yesterday! Luckily the BLMN platform is spread across the globe and not just in CA, NY, NJ, CT, MI, and IL. Once we break $10 we expect a quick multi-day move to 12.50-13.50. Remember, Wall Street is forward looking. Expect price to move before the headlines.

The Dow is shown above. We expect choppy congestion for the next 7-8 days, not conducive for a large trending trade at the time. Sentiment needs to cool off as noted in our SPX Optix chart.  We remain on the sidelines for the share market. However, our AI model is showing a huge move from late April into Mid-May. Please be ready!

Gold is too high to trade now and not low enough for a lower risk entry. Our models anticipate a pullback and strong trending trade in May. Be patient - 1800 is a brick wall currently.

Oil is holding its Oil-War low set weeks ago. A move upward as forecasted into late April should materialize. However, there are too many risky geopolitical events that may occur to take positions now. 

We will address Bitcoin in tomorrow's report. We have had many requests for a forecast by our Gold Members. We will also address our economic outlook in more detail tomorrow.


©2020 Hedge Fund Z










Important Disclosures: Investing in the financial markets can involve considerable risk, including loss of principal. Past performance is not necessarily an indication of future performance.  Actual clients may achieve results materially different from the results portrayed.  All material is for informational and educational purposes only and is not investment advice and is not meant to suggest that any securities are suitable investments for any particular investor.  All information reflects our own actions, beliefs, and processes for purely informational purposes. HEDGE FUND Z LLC IS A FINANCIAL BLOG FOR THE SOLE PURPOSE OF EDUCATION.  HFZ does not represent themselves as acting in the position of an investment advisor or investment manager for funds that are not under their direct control and fiduciary responsibility. 


Third party quotes and information may not be representative of the experience of HFZ customers and do not represent a guarantee of future performance or success. Many of the results displayed on our website were achieved using leverage, such as 2x or 3x leveraged ETF's or equity options 


The information included at HFZ and HFZ writing, research, and updates is prepared for educational purposes and is not a solicitation, or an offer to buy or sell any security or use any particular system.  Information is based on historical research using data believed to be reliable, but there is no guarantee as to its accuracy. HFZ does not represent themselves as acting in the position of an investment adviser or investment manager for funds that are not under their direct control and fiduciary responsibility. HFZ will not provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio or securities, transaction, investment strategy or other matter.  


No information, nor any opinion expressed on the Site or in the Services, shall constitute a solicitation or an offer to buy or sell any securities mentioned therein.  The information presented on the Site and in the Services has been prepared without regard to any particular investor's investment objectives, financial situation, needs, capacity, and trading ability or experience. Accordingly, you should not act on any information on the Site or in the Services without obtaining specific advice from your financial advisors and should not rely on information herein as the basis for your trading and/or investment decisions.  HFZ cannot claim or represent that any of our Services are suitable for you. 


By your use of the Site and Services, you're agreeing that you bear responsibility for your own investment research, trades, and investment decisions. Only you can decide whether or not a trade is right for you and you agree to be liable for any trades you initiate at your brokerage using research and/or tools that we provide. If you ignore our advice to do independent research and choose instead to trade solely on information, analysis, alerts or opinions found in our Service or website, you have made a conscious, willing, free, and personal decision to do so. You also agree that HFZ, its directors, its employees, subsidiaries, affiliates, and its agents will not be liable for any investment decision, trade made or action taken by you and others based on news, information, opinion, or any other material published through our Site and Services.  

For additional important risks, disclosures, and information, please visit www.hedgefund-z.com/terms-and-conditions.