Daily Report 4/20/20

We warned our followers to stay away from Oil early this week as this months futures contract were set to expire. They did not disappoint. There were no buyers for any oil in the month ending contract. With the futures market settling this week you must be prepared to take delivery of the oil if no storage exists. Well, one small problem: there simply is no storage space left on the planet to keep the oil. June futures contracts still are trading  with value on the premise demand will increase as the world re-opens in May. Many oil ETF’s will possibly fall below net capital and blow up this week. We want to avoid oil until mid-May. There may be a weak bounce after Wednesday this week but not worth the risk reward in our opinion. Although, the spot price of oil is .35 at close today, understand one can’t really buy oil for that price.

We also warned last week and in the weekly report to expect a pullback in the stock market early this week. Our forecast was  correct and we expect more weakness in the next 1-2 days ahead before a rally into April 27/28th. Then rinse wash repeat, another small pullback. We are headed higher into mid-May.

We expect Gold to be choppy this week, up then down. We are awaiting for a meaningful pullback into a daily cycle low in late April or early May. That will be a good buy point for a rally back up to 1800. The jury is out whether we break 1800 on this cycle into June. We will know shortly by the size of the  gold pullback into our cycle low in the next 7-10 days.

BLMN held up well today in spite of a big pullback in the stock market. It should get enough momentum on the next push higher in the stock market to break that $10 level we are focused on. Once through $10, expect a quick explosion up to $13 with Higher prices into mid-May. Remain calm and invested.

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