Nightly Briefing 5/28/20


We expect possible weakness into early next week in the stock market. We will most likely hold our position in BLMN through it. If you don’t have the stomach to sit through a possible 2 day drawdown you may want to sell on strength tomorrow. With the Federal Reserve helping the market, there's enough liquidity to abort any multi-day sell off. We choose to look at what is more of a certainty and that’s higher prices into the end of June and a $16+ share price for BLMN. So you can try to be a serial trader and avoid a “possible” point draw down in BLMN but may end up getting whipsawed and chasing to get back in at higher prices if the weakness does not occur. Regardless, we see strength into the June 9th Fed meeting and all time highs in the Nasdaq by the end of June. There is no right or wrong. We will most likely hold. Bloomin currently trades like a stock option, very volatile with large price swings in both directions. One may want to move their stops up to their breakeven point. We have given our opinion on multiple strategies but ultimately people must do what’s right for themselves. It is hard to find good companies with decent balance sheets and post corona-crash they are still off 65% of their February highs. Bloomin' Brands isn’t going out of business. It is owned by some of the largest institutions in the world. Black Rock owns 12.5 million shares as well as many pension funds and large banks. This isn’t the cruise ship industry or airline industry which may suffer until a vaccine is developed. The blue print of BLMN and its restaurant properties is coronavirus friendly. We have full confidence in this position.









Bloomin' is rapidly expanding its Aussie Grill fast-casual restaurants which further bode well for the company's future. This model is already dominating the food service industry in light of the pandemic. First locations were opened in Florida in April and many more in the months to come. It's market share is growing. Just take a look at Chipotle.



Rotation into steel companies is happening. President Trump may help our cause with an escalation of the trade war with china. With or without US Steel should move to our targets, $9.90 first stop. US Steel does not trade with the same volatility as Bloomin.

Dow top June 30 - July 2nd

We may take profit prior to the FOMC meeting, next week. We will make a real time call next week. We will certainly have some metal assets into our Gold spike coming post FOMC.

Gold's outlook into June.

There is still hope for UNG. Oil had a strong rebound expect natural gas to have its burn too in June.


Expect volatility tomorrow into and after the President's China press conference. Some type of whipsaw action is expected.

HFZ

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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. 

 

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