Nightly Briefing 8/5/20


The Dow Jones played some catch-up today. We expect a new post-Covid high surpassing 27,500 within days. Equity markets won’t stop until late August/early September.


When gold makes these advances and goes parabolic, many traders will say this time will be different and it won’t pull back. The facts are price is stretched too far above the 200 moving day average. We think the metals will undergo a major correction with the stock market sometime in mid September into early October. Please don’t stress that you’ve missed the move in metals. We are 99% positive you’ll have a chance to get in around the $1760-$1800 level in late September /early October, which should be followed by a rally into January and a sustained breakout over $2000. Our AI is showing some type of deflationary pressure on all asset classes during this September/October time period. We will look to unwind positions before then. 


Oil is inching higher and should continue to do so until late August/early September, no reason to sell. It’s a get rich slowly trade. UNG’s uptrend is strong into November for those from our past alerts. It’s a heavily undervalued commodity and also heavily manipulated, which drives many  market analysts mad at times. 


We have a potential target for Bitcoin in September at $15,000. We had a nice price move overnight and will see higher prices into the end of the month.


BLMN and DENN inched up today. We all know the breakout numbers by now on both: a daily clove over $12 BLMN and $10 DENN. 


As anticipated, SPCE should continue to consolidate after the secondary offering that was just completed. Though today may have struck a bottom and we could see a bounce and then a retest of this bottom with a possible slight undercut to $19. That would be the time to re-enter space in our opinion.


You’re going to start to hear the word inflation being mentioned by the Federal Reserve and the CNBC pundits more and more. The only way to prolong this mess and keep the system afloat is the Hail Mary inflation maneuver. The Fed has no choice but to pump all assets and target higher inflation across the board. We saw silver play catch-up but another metal, iron ore/steel is a big mover during inflationary periods. X, STLD, NUE, and CLF are our steel favorites with CLF having the most upside. A break and close over $6 will force us to chase but we’re still hopeful for a pullback and an undercut of last week's low slightly below $5. The next few days we will be watching closely. Steel stocks are close to a massive upside move. When we put the CLF trade on we’re going to go into detail why we favor it over other steel names.

ADT reported after the bell with middle of the road numbers and the stock is currently off .75 on light volume in  after hours. We feel a pop back to $14.50-$17 will still occur in the near future.  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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