🔋 Long Global Energy, ⛽️ Short Natural Gas

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The major indices hitting all-time highs is starting to lose its luster, as it has happened so frequently this week. With the influx of tech IPOs, the Fed’s policy changes around inflation and the Dow Jones shakeup, the news this week has been mostly positive for markets. 

Looking towards the following week, our AI has identified several Top Shorts, most of which are familiar names in our daily top shorts articles. Anthem Inc (ANTM) is the only stock rated Top Buy over the next 7 days. Understandable, considering it is a health insurance provider.

As precious metals continue to be a popular investment pick for those wary of market volatility, it’s important to note that while our AI has rated iShares Gold Trust (IAU) Top Buy for the next 7 days, it actually holds a Top Short rating for the next 30 days. iShares Silver Trust (SLV) is also rated Top Buy for the next 7 days.  What does that mean?  Probably see these trades in precious metals as short-term trades for those of you interested in playing short-term volatility trends in markets.

Next, here are some option trades to help you navigate the markets:

Put Spread Collar in Invesco QQQ Trust (QQQ):  This is a great way to introduce downside protection for your tech holdings.  Rather than selling out of your favorite tech stocks, it makes more sense to hedge their downward exposure while still keeping the upside potential.  Now remember, this is a leveraged trade which means if Invesco QQQ Trust (QQQ) were to rally hard, you could be short Invesco QQQ Trust (QQQ).

Long Call Spread in Energy Select Sector SPDR Fund (XLE): Bullish trade on the U.S. Energy Sector without having to play individual stocks.  For those of you interested in finding ways to increase exposure to the U.S. Energy Sector but don’t know where to start, this could be a great starting spot.

The Latest

PayPal has had a stellar year, most notably a Q2 that smashed targets. While the company is clearly in a solid position financially, our AI tells us that investors are better off waiting before buying Paypal stock.

Microsoft has been all over headlines whether it be about its pending TikTok acquisition or its performance on the stock market. We were curious about whether the stock is worth buying at this time and ran our AI models to determine the verdict.

Investors interested in accessing our daily financial markets coverage can follow us on twitter @forbesaiinvstr or join our slack channel here.