Nightly Briefing 6/2/20


We are expecting more stimulus Thursday from Europe’s central bank. The shorts are aware of this and hit gold in advance. 

Expect a sharp 3-4 day rally in the coming week or two in NUGT. We see  a lot of investors  are getting frustrated by this trading action. This type of whipsaw action frustrates long and short investors and has proven to be a very reliable indicator that a large move is very close. Remain calm and patient, the spike will be large and fast.

Stocks are grinding higher but many names are not participating. People are asking themselves how the US stock market is up? With all the civil unrest? Someone is reversing the futures from down triple digits every night and purchasing a handful of select stocks to impulse the market higher. If  just a handful of stocks are bought it is capable of moving the averages up. This kind of behavior is common place prior to FOMC meetings as the Fed wants the market up prior so they have no pressure to act. If the stock market is dropping sharply into a Fed meeting it forces the Fed to take monetary action. One small problem, the Fed has used up many of its bullets short of buying stock ETF’s like Japan. Interest rates are zero and the balance sheet has grown by trillions in the shortest time period ever. They want to catch their breath as this pace of stimulus and easing is not sustainable. Expect a small pullback the week after the Fed meeting in the stock market.


Our two position's are in the green and should shortly both have their moment.

Bitcoin put in a very bearish reversal today closing down after a spike over 10k. This should be the fuel trapping fresh longs above 10k to sell, creating a panic for large players to enter large long term bets, us included.

HFZ

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