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My indicators have turned to neutral, a slight upgrade from the bearish reading they were giving last week, but the overwhelming influence of the upcoming U.S. presidential election on stocks right now is making it a hard market to predict.
As far as oil goes, it is in a kind of rally mode right now, and I think it could reach as high as the $55-per-barrel level. I’m also looking for strength in gold: I would say it’s still in a bearish mode now, but a bottom will probably occur in the next few weeks, and if the Democrats do win the presidency or if they sweep, gold is definitely going to go straight up. With these factors in mind, today I’m recommending a bullish trade in a company with exposure to both markets: Chemours Co (NYSE:CC).
The chemicals manufacturer will report earnings on Sunday, Nov. 6, and analysts are looking for earnings of $0.34 per share on average — a nice improvement over the year-ago quarter.
Buy to open the Chemours (CC) Jan (2017) 19 Calls (CC170120C00019000) at $1.05 or lower.
Note: This is a relatively thinly-traded option chain, so you may need to be patient to get established at my recommended entry. Avoid buying a large number of contracts at once to prevent wild price swings; instead, enter your orders in smaller lots of five or 10 contracts.
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