The Only 5 ETFs To Trade In Q4 – And How To Do It

Group 1: Market Trends and Seasonal Patterns - The last leg of September indicates a potential for an explosive Q4, particularly for large-cap leaders, tech stocks, and retailers benefiting from holiday spending cycles [1] - The SPDR Dow Jones Industrial Average ETF Trust (DIA) has shown a positive return in 9 of the last 10 years during the 30 trading days before Thanksgiving and the 15 days after, averaging a gain of roughly 7% [2][3] - The current price structure of DIA suggests a strong seasonal window for trading, with institutional fund flows expected to accelerate into Q4 [5] Group 2: Oil and Gold Market Insights - The United States Oil Fund (USO) is experiencing a typical seasonal decline, with a critical support level near $72; a break below this could trigger a bearish technical breakdown [4][6] - The SPDR Gold Trust (GLD) has rallied over 10% this summer and reached all-time highs on an inflation-adjusted basis, indicating a bullish trend supported by a weakening dollar and recent Fed interest rate cuts [8] Group 3: Cryptocurrency and Tech Stocks - Bitcoin (BTC) has seen a strong summer, up approximately 25% from its lows, and is expected to rally into the end of the year, particularly in years with strong second- and third-quarter performances [10] - The Roundhill Magnificent Seven ETF (MAGS), which tracks major tech companies, has increased by 20% since late June, highlighting the continued dominance of big tech in the market [11][12] Group 4: Trading Strategies - Suggested trading strategies for GLD include buying the November $180 Call or entering a $180/$190 call spread for a lower-cost trade with defined risk [13] - For Bitcoin, recommended strategies include buying November or December calls or considering call spreads to reduce premium risk [14] - For MAGS, buying call spreads into Q4 or focusing on individual trades in Tesla and Google, which show strong seasonal tendencies, is advised [15] Group 5: Long-term Market Outlook - Historical data indicates that supercycle bull markets last an average of 6.5 years with gains exceeding 300%, suggesting the current market is only halfway through a larger cycle [16]