Dry Leaf on Green Plant. Marta Wave/Pexels

A Rough Month Across The Board

September was a rough month across a number of asset classes, as Compound Capital Advisors founder Charlie Bilello pointed out. Gold was down, bonds were down, the S&P 500 was down, crypto was down, and big tech companies like Facebook (FB) were down double digits. 

The rare bright spot on Bilello's list, aside from volatility, was Tesla (TSLA). 

Our Top Names From September 1st

Every day the market's open, our system gauges stock and options market sentiment to estimate potential returns over the next six months for thousands of securities with options traded on them in the U.S. Each night, it posts its top ten names from that daily ranking. Its top names from September 1st finished the month up 2.65% on average, versus SPY which was down 5% on the month. 

Extending the comparison out to Friday's close looks like this. 

Our best performer so far from September 1st is Laredo Petroleum (LPI), which we mentioned in our previous post ("Why Gold Isn't Going Up, But Black Gold Is"). Our worst performer from September 1st is the Bitcoin miner Marathon Digital (MARA). 

Looking Ahead 

One top name from September 1st which appeared on our October 1st top ten was the iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO).

Screen capture via Portfolio Armor as of 10/1/2021.

More broadly, you can see the energy theme expanded with natural gas (ProShares Ultra Bloomberg Natural Gas (BOIL)), generators (Generac Holdings (GNRC)), and uranium (Energy Fuels, Inc. (UUUU)). 

As always, we suggest readers consider hedging if they are going to buy our top names, especially volatile ones such as BOIL. We posted a video showing how to optimally hedge it with our iPhone app last month.

You would, of course, want to scan for a current hedge if you hedge BOIL now, but you can use the same process shown in the video above.