Oil & Gas Stocks Are Breaking Out Again
186 stocks went down 10% or more last week. Tech stocks (semis, cloud, Internet), financials and US Treasuries were hit the worst. Anything cyclical and related to growth is under pressure. Tech is looking heavy and on the brink of breaking down. QQQ managed to finish right on its 50dma. If it cannot bounce above 353 next week, it is likely to test 340 soon.
34 stocks went up 10% or more for the week. The winners - oil & gas names, discount stores, uranium, potash stocks - typical stagflation move (expectations for high inflation and low growth). The next earnings season and CPI report is right around the corner. Maybe, the market has begun to price strong earnings in energy stocks and inflation that is likely to remain elevated for the foreseeable future. If the same trends remain, we should see a continuation higher in many of the energy names that started to break out last week.
Here are just a few of the ideas and comments I shared with subscribers last week:
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