Stock Trends

Timely energy stocks, 2 longs and a short in financials and more

Good morning,

US equities have bounced back strongly this week, with the S&P 500 up all three days and on pace for its best week since mid-June.

Tuesday’s clearance of the 50-DMA and 4448 level was technically significant, as has been the leadership profile this week: Technology, communications services and consumer discretionary are leading (all up around 3.5%) cyclical value sectors aren’t far behind, while defensives are lagging and little changed. All in all exactly what bulls should want to see.

This week at the individual equity level, we’re looking at:

• Energy stocks to buy

• 2 longs and a short in financials

• China heavyweights

• A few stocks on the Blue Chip Hot List

• and more!

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Energy stocks to buy

CNQ breaks out of a 10-month base

Canadian Natural Resources cleared a 10-month resistance line to start this week and followed it up with a sector-leading 2.6% gain on Tuesday. This base measures to $75, which would take it above its April 2022 all-time high. Finally, note the 3-month relative high in the bottom panel.

The real FANG is back to being the FANG to own

Diamondback Energy is trying to emerge from a minor base that has developed over the past 3 weeks. A move above $153 would leave little to call resistance between here and cycle highs at $169.

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2 longs and a short in financials

Long (short-term) Goldman

Goldman is still range-bound and headed for a date with the apex of this triangle. But it is getting a strong bounce off the uptrend line and a move back toward $350 suggests mid-single-digit upside over the next few weeks and months.