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My indicators are giving bullish readings this week, an upgrade from last week’s neutral readings, but this is likely due to the fact that the first four trading days of a new month have a strong bullish bias, as this is the time when fund managers are putting new money to work.
Therefore, we are starting to lean toward the bearish camp again as we head further into September — the worst-performing month of the year. There is a lot of headline risk for the market at this point, including any potential developments concerning North Korea, the budget situation in Washington, D.C. and even hurricane Irma, which has prompted a massive evacuation in Florida.
Commodities like gold have been going practically straight up due to geopolitics and a falling dollar. So, while we can’t predict what’s going to happen in Washington, we can use the information at hand to make educated investment decisions. And right now, Barrick Gold Corp (USA) (NYSE:ABX) looks like a good play.
Buy to open the ABX Nov 18 Calls (ABX171117C00018000) at $0.98 or lower.
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