AI Recommends Buying 🖥 CQQQ, ⛽️ Shorting BNO

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3 days into October and there’s plenty to talk about. Friday morning, the September jobs report came in at the lowest since May, signaling that the economic recovery could be slowing down. Unemployment has been improving, but with the layoffs across the airline industry, sentiment could take a hit. 

Although the House passed a $2.2 trillion stimulus plan on Thursday, it remains unknown whether the Senate will pass it. A revision to the previously proposed HEROES Act, this would extend the paycheck support program from the CARES Act, which expired on Thursday. If there was an industry that needs that extension, aviation would be among the top of the list. 

Without the paycheck support, airlines would be forced to furlough or layoff thousands of employees, something that has been avoided as much as possible since travel sharply declined in March. Not far behind would be cruiseliners, and it shows when you look at  Norwegian Cruise Line Hldgs (NCLH), a stock our AI has rated Top Short for the next 7 days. It currently has Q-Factor Scores of C in Technical, F in Growth, D in Momentum Volatility and F in Quality Value. 

Big Tech ended the month with a full-blown rally, closing out a nightmarish September on a less morose note. October isn’t known for being a strong month for markets either, and for the next 7 days, Datadog Inc (DDOG) is rated Top Short by our AI with Q-Factor Scores of F in Technical, D in Growth, F in Momentum Volatility and D in Quality Value. This doesn’t mean all tech is off-limits, as Invesco China Technology (CQQQ) is rated Top Buy for the next 7 days.

Outside of Home Depot Inc (HD), a Top Buy for the next week with Q-Factor Scores of B in Technical, B in Growth, A in Momentum Volatility and A in Quality Value, the retail sector continues to remain off the list of Top Buys. Bed Bath & Beyond Inc (BBBY) has been rated Unattractive and Nordstrom Inc (JWN) has been rated Top Short for the next 30 days. Bed Bath & Beyond received scores of B in Technical, C in Growth, F in Momentum Volatility and F in  Quality Value while Nordstrom received Q-Factor Scores of C in Technical, F in Growth, F in Momentum Volatility and F in Quality Value.

United States Oil Fund LP (USO) and United States Brent Oil Fund LP (BNO), Marathon Oil Corp (MRO) are all Top Shorts for the next week. Marathon Oil holds Q-Facor Scores of C in Technical, F in Growth, D in Momentum Volatility and F in Quality Value. And for the next 30 days, Noble Energy Inc (NBL) is a Top Short with scores of D in Technical, F in Growth, F in Momentum Volatility and F in Quality Value.

Some of our favorite options trades this week: 

Call Spread Collar in Activision Blizzard (ATVI) – Leveraged bullish options trade on one of our favorite plays in the video game sector heading into the holiday shopping season.

Short Call Spread in VanEck Vectors Semiconductor ETF (SMH) – Bearish hedge trade on a volatile part of the U.S. Tech sector. A great way to hedge out portfolio exposure to semiconductor industry trends.

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