Wall Street Next Week: Financial astrology for the successful investor & trade

My November 18 InvestorIntel Interview

"In the spring folks were bracing for the worst and the worst didn't happen.

Now they're expecting the best and they may be a little too rosy."
Michael Arone, chief investment strategist, State Street Global Advisors

HW: Just a little?

 

Many analysts believe in sector rotation: 2020 winners will not necessarily be 2021 winners.

Be that as it may, we are ready for trading short again early coming week BUT with Thanksgiving u[coming not aggressively .

Aggressive investors will wait and watch to pounce on misunderstood wounded winners.

Regardless of your risk preferences, precious metals will continue to shine this Fall!

 

MARKET WATCH

7/31 MOC:          DJI 26377 SPX 3271  NAS 10745

2020 Highs:         DJI 29964 SPX 3645  NAS 12108 

VIX:                       +/- 24

 

Commodity Trading:

Gold +  Astro Nov/Dec  ADD $2000 COMING (well) before Chinese New Year .

Silver Astro is mildly positive  R1 26 R2 28 R3 30.

Copper 3.25+ Intermediate term target achieved.

Oil $44+ 2021 Target. An accumulate for 2021 Post Election to 44+ . 

KEY DATES:        DECEMBER 10, 14, 21, January 4/5 20/21

DJIA:                    29000 SUPPORT?

SPX:                     3558 PIVOT R1 3588 R2 3600 R3 3650 3500 SUPPORT?

NASDAQ:            11884 PIVOT

GOLD:                 1869 PIVOT R1 1880 R2 1900 R3 1925 R4 2000

SILVER:               22.50 SUPORT  26 RESISTANCE

OIL:                      40 SUPPORT 44 RESISTANCE

COPPER:            3.20 PIVOT 3.15 SUPPORT  R1 3.30 R2 3.40 R3 3.50

US 10 year           WATCH +/-

CNY                     WATCH +/- 6.66 6.50 SUPPORT?

DXY                      91 SUPPORT  R1 93 7

VIX                       20 SUPPORT 30 RESISTANCE                       

 

2019 CLOSE:          DJIA 28508 SPX  3231 & NASDAQ 8823  

2018 CLOSE:          DJIA 23327 SPX  2506 & NASDAQ 6635

2017 CLOSE:          DJIA 24719 SPX  2673 & NASDA 6903

2016 CLOSE:          DJIA 19762 SPX  2238 & NASDAQ 5383

AFUND Fair Value: GOLD $1685.

Reduce Risk and Focus on Capital Preservation:

THINK TRADITIONAL SWISS AND PRESERVE CAPITAL: HEDGE AND PROTECT AGAINST DOWNSIDE RISK.

 

1. 2. Dr Copper Speaking LOUDLY today 3.29 3.25 Pivot R1 3.40 R2 3.50
2. If you believe in accelerating global growth, copper will continue with strong positive momentum. If you believe in Covid 19 spreading faster then stop&reverse (SAR) P2 3.20
3. With widespread vaccine use expect -->3.50

@tafund  @pafund

2. 7 High-Yield Dividend Value Stocks to Buy

Prepare a list of stocks to buy AFTER a correction &/or to take advantage of yearend tax selling.

If this is not upcoming soon, then we will remain highly liquid and largely continue to protect our YTD profits.

Otherwise, we plan to only selectively add stocks in our favorite sectors e.g. precious metals, mining and entertainment.

 

Favorite Q1 2021 Sectors:

Entertainment, Mining, Safety & Security & Technology (Undervalued & Highly Scalable)

Short term we are mostly watching Select Health Care (lower cost/better outcome) due to potential future political risks

Stock selection is important. Whenever possible, we prefer to recommend stocks sporting strong cash flows, sound balance sheets & growing dividends.

Choose your favorite stocks and patiently bid for them.  

3. Gold's bull market will continue into 2021 for these 3 reasons, Goldman Sachs says

 

Gold/Silver Ratio ~77 75<>80

If you believe in accelerating global growth silver outperforms gold as silver is both a precious metal & an industrial commodity.

If you believe in Covid 19 spreading faster then we will see 80 before 75. With widespread vaccine use expect 70 test

@tafund  @pafund

Despite being overvalued, with strong astro this Fall, owning gold and silver should continue to well reward investors.

Given newbie gold investors have little knowledge of the industry and many are accustomed to Tech valuations, is there an upper limit to Gold or Silver pricing? Maybe not!

Currently, Gold is in an 1850-2060 trading range.

Conservative investors can accept $2200-2300, while more aggressive gold and silver bugs are replacing their previous 2000+ gold targets with 2500-3000+.

Silver $22.50 support with $30 overhead resistance. Most analysts expect $30 Silver & 2000 gold by 2021 Metal Ox Chinese New Year.

 

There are so many good buys in the precious metal space depending on your time frame & risk/reward desires - the trend is MOST definitely your friend!

See WSNW & recent AFUND luncheons, conferences & Webinars [Past Webinars have been posted on our Youtube channel] for some investing ideas that may be nicely profitable upcoming Fall/Winter.

Gold: Fundamentally Indian & Chinese demand should grow despite current headwinds due to high prices coupled with increasing global investor interest.

Please note gold is under Very favorable astrological influences Q4 2020.

Longtime Gold bugs are happy that more generalist investors are beginning to join the party:

In addition, many major brokerage houses have $2000+ price targets into 2021.

Given it is under allocated by most investment programs, this gives it even more potential room to run, especially if/when inflation fears resurface &/or if/with a falling US dollar!

We believe gold & silver valuations will largely sport well above Fair Value into the Year of the White Metal Ox (2021).

Just as they were undervalued for a long time, it CAN and is likely to be overvalued for a LONG time.

While fundamentally gold is currently overvalued, in much of the Fall & Winter, the astro is very positive for gold.

Hence we recommend a full and over weighted precious metals portfolio allocation.

However, we advise long term precious metal investors to also pay attention to stock selection.

1. Gold remains cheap geopolitical crisis insurance.
2. For investors who cannot or will not buy the $US currency as well as investors who wish to safely and cheaply hedge their US$ exposure, ONLY GOLD IS AS GOOD AS GOLD!
3.  Once again some investors are hedging record equity prices by buying gold.
4. Low real interest rates is very positive for gold as well as low global bond yields makes gold an attractive alternative risk mitigation hedge.

Gold FV $1685= Commodity FV: 1600 + Currency FV: 1668 + Inflation Metal FV: 1590 + Crisis FV: 1882.

INVESTORS: We plan to stay LONG in H2 2020 with occasional hedging & profit taking.

Note: Our current Fair Value for Silver is $21.50.  

4.Starting soon, we plan on adding a new feature: SEASONED SPECULATOR. This will generally be a very high risk/high reward market pick.  These picks are for speculative allocation, recommended to be bought in groups of 5 to 10 stocks. Position size 10%-20% of your speculative allocation, i.e. “money you can afford to lose without altering your life style.”

5.“With both fiscal and monetary policy still highly accommodative, a sharp rebound in company earnings will drive equity returns.”

Jeroen Blokland, portfolio manager, Robeco

HW: Yes for most hardly at pre-crisis levels

“It’s unlikely now with a split Senate that this serious level of fiscal spending goes on.”

Darius Tabatabai, head of trading, Arion Investment Management

HW: That is the majority view but won’t be known for sure until sometime after January 5th.

 

Markets are still stuck in a push-and-pull between the dramatic rise of new COVID cases versus apparent progress on vaccines. This is likely to continue until we have an approved and distributed vaccine."

David Carter, chief investment officer, Lenox Wealth Advisors

HW: After January 20^th or before?

6. JPMorgan: 1Q GDP Will Contract 1% Due to 'Grim' COVID Surge

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7.READER: Thanks  for call on standard  lithium and e3 metals and lake resources.  Anything else?

HW :Piedmont Lithium and Neo Lithium.