Nightly Briefing 10/28/20 - The Forecast

Nightly Briefing 10/28/20

Nightly Briefing 10/28/20

Today has a high probability of being a bottom. GDP numbers come out at 8:30am and should reflect the strongest quarter of growth in the history of our country. Buyers are scarce into the election with small investors panicking out and large banks buying their shares. We expect a large rally November 4th into November 9-11 in all major indexes. Russell and NDX should lead, most likely on stimulus and an election relief rally. Today was all about small investors watching mainstream news, which does nothing but sensationalize the Covid apocalypse. After the election, we will likely hear about how the treatments have begun to work and few people are actually dying.

Expect a strong bounce in gold and silver. Metals should enjoy a rally with stocks into our mid-November dates.

$35-$36.50 is extreme support for GDX. Do not expect a waterfall decline. All roads lead to metals regardless of the election outcome. The dollar is headed much lower and nothing can stop that.

We are in a long term silver trade and do not update it daily. This does not mean we are not confident in it. The capital for this trade we were clear should be funds you did not need for a period of months until the trade reached fruition. We will sell on the next intermediate cycle advance which should roll into Q1 2021. Silver will rally 25% in 5-7 trading days. It is a heavily manipulated metal, so holding a core position is important. The rally can explode at anytime with all of the naked shorting and price suppression that constantly takes place. We witnessed in late July a massive move in a matter of 5 trading days. If you are not positioned and the rally begins with a $2 up-day, most investors wait thinking it will pullback but it never does. We are near extreme support for silver if members want increased exposure. Our thinking is a bounce tomorrow and possible down days Friday and Monday for a bottom. After that, silver should climb with stocks into mid-November.  $24 is possible and $27-28 by early December

Virgin is due for a technical bounce and is capable of firing right back up over $20 into the November launch cycle. The next successful launch should usher in more upgrades and price acceleration into January when flights are scheduled to start. You will know when a stock like this is about to get upgraded. We will see heavy volume on no news and price will climb a day or two prior mysteriously.

Sometime between Thursday -Monday should produce a 1-2 week price peak.

With major cities imposing partial lockdowns and limiting restaurant seating, all hospitality stocks got hit today. DENN has a large number of its locations in heavily Covid-affected states, which is a reason major analysts are hesitant to issue an upgrade. It is a true value stock and just a matter of time before it gets recognition. When we analyze risk in Denny’s we see the following: They are staying in business, make a nice profit, and have already raised cash and diluted to deal with Covid-related expenses. Hard to sell a stock like that. For the patient investor, it remains a buy.
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