Nightly Briefing 5/6/20



Every bull market has drivers. Expect robotics, artificial intelligence, biotech, and nano technology to lead the next 10 years. The NASDAQ and the SOXX semi-conductor index will benefit most.




We will be shorting SPX in the days ahead. Look for a top in the stock market May 12-14th.



The second half of May is historically a seasonally weak period. This is not the catalyst for us going short. We have a significant AI signal that denotes a 2-4 day period of 5-10% downward action in the share market. We have a window and will have our positions placed prior.



We had a multi-billion dollar liquidation in the premarket this morning when volume is extremely light. 16,000 contracts dumped in a period of 30 minutes. Again, not normal selling and clearly an attack by a bullion bank who most likely is getting squeezed for physical delivery into week-end and needs price lower. This should resolve upward into next week after Friday’s unemployment numbers.



We can see sentiment, crowd philosophy, has cooled In Gold which will allow us to see higher prices into next week in Gold and the Gold miners, NUGT.



We noted the potential for large swings in last night’s briefing. As expected we got them. It is impossible to trade every little wiggle in the market. For every one you time perfectly you will miss the next three - not good odds. If we see a multi-day pullback of size we will hedge or sell part of our position. With these one and done attacks it’s better to just sit and focus on the larger trend. We have much higher prices coming into the end of May and early June. Six years of sideway coiling consolidation will produce a huge first move. We are in the midst of that right now.



Natural gas is frustrating to trade, but if you focus on the larger trend you will be happy you held on over the next 3-4 weeks. We expect a spike low today then a strong multi day rally to begin into next week. The triple top shown above, $15.50, should be broken shortly. Don’t think price will inch up to it and pause right before its struck and allow retail traders to get in. Price will gap right through that while you are sleeping and traders will likely be paying 16.50+ once the market opens on that day. The market makers and machines don’t give you time to get in. Remember natural gas is a commodity which trades 6 days per week and almost 24 hrs per day so large gap ups in the AM can occur. Remain calm in these bipolar markets. Keep your eye on the prize, our trending trades that are just starting and in profit.  By the end of May we will have significant gains in these trades plus several others we are about to execute.

HFZ

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