Closing Bell Special: My Trade for October

At the start of August, I recorded Closing Bell #150.

As you’ll see in today’s Special Closing Bell, we were bang on the money.

So, what happens next?

In the last few Closing Bells, I have focused on the effect of the large rate cut in the US. I have shown you the jump in property stocks and given you a few stocks to consider.

I have also kept a close eye on the US and Australian dollar.

The US dollar is falling towards a major support level that could signal a much larger fall in the currency if it can’t hold.

The Australian dollar is also looking ready to bust out of a tight range.

When a long-term range ends you can often see a rapid and large move.

I think that’s coming.

We are on the cusp of seeing the Aussie dollar rise to 71 cents. And then perhaps 74 cents over the next three to six months. The RBA is determined to hold rates steady as the US cuts. So I’d expect the Aussie dollar to rally.

But what does that mean for you as an investor going into October?

That’s where things get interesting…

As the US dollar falls I have been keeping an eye on a few beaten up commodities, looking for shakeout/bounce back opportunities.

I pointed out in the last few Closing Bells that copper, zinc, and aluminium have been performing well. They could confirm a monthly buy signal at the end of this month.

The news this week that China has launched a large monetary stimulus to help support their property sector has put a rocket under those commodities as well as many others.

It is an added tailwind to the bounce back story for commodities that was already growing due to the interest rate cuts in the US.

I caught up with Woody for a great chat on the day of the Chinese stimulus (Tuesday) because I thought it was a major event.

Stocks are starting to move, and I have sent out three trade alerts in the last week as I get members of my services prepared for what I think could be coming.

If you have watched Closing Bell for a while you will know that I was pointing you towards a copper ETF over a month ago. I gave you the exact levels where you should start buying.

That ETF has jumped 17% over the last three weeks.

So I’m hoping you have been doing well on the back of my gold stock tips and the recent tip on copper.

But if you still need some guidance about what is going on and where the opportunities will be, then I reckon you should watch this special interview below. I discuss with Woody the changing prospects for commodities now that China has shown its hand.

Beaten up commodities such as copper, zinc, and aluminium are bouncing hard after the recent Chinese stimulus. There could be more to come so Murray sat down with Woody to explore the shakeout opportunities on offer.

Click below to watch the video now:

Click Here to watch.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).