Once the election results finalize, the markets will focus on pandemic and additional fiscal stimulus. The prospects of a divided congress leave little chance of tax hikes or healthcare and tech reform. Other news this week, the Fed left its Fed funds rate unchanged and its QE program unchanged at $120 Billion/month while the Bank of England increased their QE program by 150 billion pounds. That news pushed the dollar index to a two week low while silver hit a two week high and gold at a six week high.
Looking at the action in Gold/Silver this morning, along with three weeks of declines in SPDR Gold holdings, traders are rushing to renter the market in a broad-based way. Thursday, when the buying frenzy ended, gold was up 2.7%, and the FOMO crowd again is left holding the bag. We saw those traders chase Friday morning, pushing gold up to our Morning Express 3-star resistance range from 1962.1-1970. Working with clients over the past 20 years, I have noticed the most significant risk a trader has every day is not the markets or their strategy; it is their emotions.
We always strive to design strategies that keep emotions at bay by creating an executable trading plan and an options strategy that gives you a favorable risk/reward for "the big" move. If you have been working with us for any length of time, we outlined an April call spread in silver that started to kick in on this latest surge. While we reaffirm our bullish calls on Bitcoin, Copper, Gold, Silver, and Oil (Q3 2021), the failure of the Democratic Party to get a "blue wave" means that many of the policy initiatives and spending proposals could come watered down. With 2021 around the corner, we send out a complimentary 2021 Futures Calendar & Reference Guide with a limited supply. The guide is your go-to resource for government & industry report dates, contract specifications, futures, and options expiration dates. *Available to U.S. residents only. You can request yours here: Blue Line Futures 2021 Pocket Calendar.
March Mini Silver futures strategy
While many of our existing clients have on the December Mini 1000 oz silver strategy, we are looking at expanding out to March by purchasing ONE 1000 oz contract per $25,000 at 24.75 with a stop at 19.75. Doing such would ideally risk $5,000. We would look to a silver target of 34.75, which would allow for a profit of $10,000. If you would like to be up to date on the developments and strategies we are deploying, please register for a Free two-week trial by clicking on the link here: The Blue Line Express Two-Week Free Trial Sign up.
PHILLIP STREIBLE Chief Market Strategist www.bluelinefutures.com Main: 888-441-8555 Direct: 312-858-7303 Fax: 888-370-2221 Blue Line Futures LLC 141 W. Jackson #2845 Chicago IL 60604
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.