Data and Debates Will Test Retail Buyers and Markets This Week

Shah Gilani | Sep 28, 2020

This week’s going to be a battle between buy-the-dip retail traders and double-dip recession fearing investors. Each side has plenty of ammunition and both camps are looking for back-up in data out this week and possibly some direction from the debate on Tuesday.

Bulls are betting the dip in markets and correction in some mega-cap tech darlings are a buying opportunity. And they’re going to test the waters early this week. Bears are betting the dip’s not done and sloppy data on the heels of no-stimulus in sight will grease the path lower.

Last week’s fight gave both camps hope, but the round went to the bears.

My money’s with them because retail buy-the-dippers aren’t likely to get institutional follow-on momentum as money managers aren’t ready to commit the massive amount of sidelined cash they have at the ready until they see what the election brings.

Here’s what happened last week, what data points could move markets this week, and a final word on the near-term direction of equities.

What looked at the end of the week like a dull week, last week, was anything but.

You Don’t Need to Be a Gold Bug to Know to Buy Gold on This Dip

Shah Gilani | Sep 25, 2020

I’m not a “gold bug,” never have been, never will be.

A “gold bug” is someone who expounds the many virtues of owning gold, including that it’s a “store of value,” a “safe-haven” investment, an inflation hedge, and because its been hoarded by investors, central banks and governments the world over, it’s price is always going to rise.

All of that’s true, to some degree, but only because so many people believe gold is all that and more.

The reason I don’t trade gold all the time is it’s not volatile enough, meaning it doesn’t move up and down enough for me to watch it and trade its ups and downs. The reason I don’t invest in gold for long periods is because I don’t think it’s going anywhere, and I’d rather place my capital in stocks or other instruments I think are moving a lot higher.

But, that doesn’t mean I don’t buy, sell, trade, and invest in gold, especially when I see a good set-up, meaning a set of reasons gold’s about to make a move, I’ll jump in.

This is one of those times.

More Headlines

  • Here’s Why the Fed Pulling Another “Saturday Night Massacre” Would be the Best Thing for the Markets

    The Federal Reserve’s not the problem, or maybe it is.

    Economic growth, job creation, narrowing the wealth gap, equal opportunity in America, are the problems, but not the Fed’s problems.

    Those problems should fall on the administration in power and Congress, but instead, the Fed has made these problems their concern, and if that doesn’t change, our economy could be headed for trouble, big trouble. We’re talking a meltdown that will put the Great Recession to shame.

    On October 10, 2020, the Saturday before Columbus Day, the Fed should announce a new role for itself, one that will shake up markets, politics, and the country, but ultimately result in the problems the Fed can’t fix being addressed and fixed by presidents and Congress.

    It’s been done before. On the Saturday prior to Columbus Day in 1979, then Fed chairman Paul Volcker, the last strong, independent Federal Reserve chairman, changed America’s future.

    Jerome Powell, you’re up.

  • You’ve Been Watching the Bellwethers, I Hope

    Today shouldn’t be any kind of surprise to you.

    In fact, I know you saw this selloff coming because you had a roadmap with every signpost and mile marker redlined and highlighted with flashing “bellwether” levels to guide you.

    You have been paying attention to your Capital Wave Forecast, haven’t you?

    We’ve got more to go on the downside, so don’t be in any rush to buy this dip.