AI SECT Forecast


Bullish Case: Recent implied volatility trends suggest a rising sentiment around SECT, signaling potential price appreciation above $54, especially with historical success in retaining growth over 1-2 years. Sector strength may drive bullish investor activity.


Bearish Case: The current high implied volatility paired with flat price action indicates heightened uncertainty. If market corrections occur, SECT could retrace below $50, reflecting investor caution and historical performance risks.


Potential Outcomes:

1. 60% chance of sustained consolidation around $52-$54.

2. 25% chance for a breakout past $54 due to positive sector trends.

3. 15% likelihood of decline towards $48 based on market corrections and growing volatility.


Trading Oracle: Adopt a bullish debit spread strategy, buying SECT 55C while selling 52C. The implied volatility suggests capturing upward swings over the next 1-2 months. This setup offers a favorable risk-reward ratio and follows historical success patterns.


August 21, 2024


Northern Lights Fund Trust IV - Main Sector Rotation Forecast

SECT      Northern Lights Fund Trust IV - Main Sector Rotation











Correlated Assets

Assets that tend to move strongly with SECT



VTI Forecast + Options Trading Strategies   VTI  Vanguard Total Stock Market (1.0)


SPYG Forecast + Options Trading Strategies   SPYG  SPDR Portfolio S&P 500 Growth (0.99)


SPXL Forecast + Options Trading Strategies   SPXL  Direxion Daily S&P 500 Bull 3X Shares (0.99)


QQQM Forecast + Options Trading Strategies   QQQM  Invesco Exchange-Traded Fund Trust II - Invesco NASDAQ 100 (0.99)


IVV Forecast + Options Trading Strategies   IVV  BTC iShares Core S&P 500 (0.99)



Uncorrelated Assets

Assets with little price relationship to SECT



UCO Forecast + Options Trading Strategies   UCO  ProShares Ultra Bloomberg Crude Oil (-0.0)


KSS Forecast + Options Trading Strategies   KSS  Kohl's (0.01)


BSY Forecast + Options Trading Strategies   BSY  Bentley Systems (-0.01)


CSGP Forecast + Options Trading Strategies   CSGP  Costar Group (0.01)


JD Forecast + Options Trading Strategies   JD  JD.com (0.01)



Anticorrelated Assets

Assets that tend to move strongly against SECT



SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.94)


VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (-0.95)


SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (-0.99)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.99)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.99)





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