MHD Forecast


Bullish Case: Stable dividends, positive institutional investments, and undervaluation may drive short-term gains despite flat recent performance.


Bearish Case: Historical trends indicate a persistent downward trajectory, pressured by potential rate hikes and macroeconomic challenges.


Potential Outcomes:

1. Rate hikes (60%) likely pressure prices further.

2. Steady dividends (70%) maintain slight investor confidence.

3. Institutional interest (50%) could drive brief rallies.


Trading Oracle: Start with bullish debit spreads targeting a 1-3 month window to capture potential short-term gains from stable dividends and institutional interest. Switch to bearish credit spreads beyond this period to capitalize on anticipated long-term declines.


July 19, 2024


BlackRock MuniHoldings Forecast

MHD      BlackRock MuniHoldings











Correlated Assets

Assets that tend to move strongly with MHD



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.05)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)



Uncorrelated Assets

Assets with little price relationship to MHD



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.05)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)



Anticorrelated Assets

Assets that tend to move strongly against MHD



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.69)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.05)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.34)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.45)





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