Forbes - 🥈Buy Silver, 📈Short Growth Stocks

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After a 5-month rally, we are officially in a  correction. Corrections aren’t always a bad thing, and hopefully, this will taper down the prices of overvalued stocks and ETFs. Going into Friday morning, tech edged slightly higher as the sector capped off a truly volatile week. 

The Nasdaq has taken the biggest hit out of the major indices, dropping 10% over the span of three sessions. The Dow is down 1.7% for the week while the S&P 500 has seen a more significant setback of 2.56%.

Our AI models have selected a number of Top Buys and Top Shorts. You may remember seeing American Eagle Outfitters Inc (AEO) and Goodyear Tire & Rubber Co (GT) last week. Both remain Top Shorts for the next 7 and 30 days, respectively. We’re going to continue seeing retail show up in our Top Shorts, as the industry moves to a more digitally-focused business model. It’s possible that this wave will pass, as new trends are starting to emerge, such as stores intended only for online order fulfillment.

The iShares Silver Trust (SLV) ETF has been the most resilient of all ETFs listed, holding a Top Buy rating for the 4th consecutive week. This precious metal is currently a much less risky investment than most securities listed, given the unpredictable nature of the market. Additionally, iShares Global Energy (IXC) remains a Top Buy for the next 30 days. It may seem like all commodities are low-risk, but that’s not necessarily the case. For instance, Murphy Oil Corp (MUR) and Occidental Petroleum Corp (OXY) are both Top Shorts for the next 7 days, while Noble Energy Inc (NBL) is a Top Short for the next 30 days.

Options trades to focus on: 

Short Put Spread in Archer-Daniels-Midland Co (ADM) – Bullish trade on one of Neutral-rated stocks. High implied volatility levels make a bullish trade attractive here.

Long Butterfly in 3M (MMM) - Income trade with a bullish bias on one of our favorite stocks for the month. A great way to generate income with such rich implied volatility levels.

As a reminder, please vote for Q.ai! The team has been nominated in four categories for the Benzinga Global FinTech Awards. Stephen, its Co-Founder and CEO, has also been nominated in the category of Influential Data Scientist – you can vote for him here.

The Latest

For the month of September, we’ve had our AI dig through the data and identify the top U.S. Consumer Discretionary and Value stocks. 

Every week, our AI evaluates the top trending stocks and provides ratings along with its factor scores. This week, Facebook topped the list along with several other “Attractive” rated stocks.

Our AI has rated Lockheed Martin, a strong company with vast potential, “Top Buy” for the month.