Look for end-of-quarter window dressing in major indexes into September 30th +/- one trading day. We mentioned this trade last week for aggressive traders into the end of the month in SPX and NDX.
The NDX has accrued record non commercial shorting the last 10 days. This is a result of retail traders hedging their mega-tech and biopharma positions into the election. If our forecast plays out (waiting for confirmation October 6/7), we will experience an epic squeeze and a tremendous rally in the NDX. Other indexes will participate but not close to NDX. We will look at shorting SPXL September 30th with a tight stop. We will look to buy the pullback into Oct 5-7 for the rally in the NDX via TQQQ.
We expect an intermediate cycle low at the end of October. That is the best time to play the metals complex with leverage.
Don’t think about going long SLV or GDX unless for a short term trade, not recommend. The trend is currently down. Lows for SLV , GDX, and GDXJ are targeted for early November. This will be a tremendous buying opportunity.
One of our highest confidence trades from our AI is natural gas coming into mid-November: $17-$18 target. We currently have UNG in our short term portfolio.
October should have several big PR’s for Virgin Galactic, which should help price explode higher over $20.
We expect Denny’s to reinstate its dividend by year end. Institutions make up 90% of Denny's shareholders. Expect them to start piling in before year end.
With Europe looking to ban cash and restrict gold purchases, BTC and SLV are set to explode into 2021. In our opinion, everyone should own some BTC long term. Everyone bashes it in the mainstream but large big name institutions own it and well as many billionaires. Follow the money.
Inflation expectations has influenced price and most commodities. Steel is one sector that has not yet benefited. It should occur into the first quarter of 2021. Rallies in the steel sector can be explosive. CLF has the largest short interest of any major steel companies. Above $10, there is risk of some dilution or debt to raise cash. We will most likely be out of this trade before then and into other steel names for the breakout.
In October, crude at a minimum should retest its September high of $44+ and USO $31-$32.
We have two major, multi-week trending trades coming in metals and stocks. Be prepared, we may take positions in options. Is your account approved for options?
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