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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