The Fed pumped $3 trillion into markets and dramatically expanded their balance sheet during the post-Covid bounce. Under no circumstances do they plan on simply walking away. The low may have been put in September 8th, but a re-test of SPX 3,300 at a minimum should occur again into Sept 17. We favor an undercut low between 3,220-3,290 into Sept 17, post FOMC, then a rally into month end. The current bounce can fade starting tomorrow and continuing into the Fed meeting. A final drop is expected to occur into our Sept 17 low. Based on the strength of rally that follows that low, we will be able to project price levels for October. We hone into time, first and foremost. The second largest drop of the year is expected from October 23 into December. We will be short. We do not recommend shorting the stock market into this present low in the making. The Fed can abort and shorten any DCL (smaller correction). We are looking to buy the dip next week.
Unless gold breaks $1975 futures, we expect it to continue to follow our pattern of a top Monday, Sept. 14th, followed by a low Sept. 18-21, $1810-$1870. A peak October 5th is expected in gold before an ICL decline into late October. An ultimate low in late October is currently expected with lots of wild swings, keeping both bulls and bears on their toes. But lower highs and lower lows should remain into late October.
Steel needs to do something soon for us to keep it in our portfolio.
As funds look for safe value trades on a 3-4 month time frame, they will find Denny's trading at more than a 50% discount from last February.
Virgin’s profile is becoming more and more bullish. A move over $20 can happen on the next piece of news. We expect October and November to be great for SPCE.
Crude should remain coupled with the stock market.
A spike into early October is up next for BTC. Next week may see another pullback into support before a launch into early October.
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