6/24/22 Stocks Rise, Energy Slips—Buffett Buys the Dip

News:

Yesterday the markets, despite spending the middle of the trading session in the red, closed green and near their highs.

The Dow underperformed, advancing just 0.6% for the day, while the rest of the big four indexes gained more than 1% each.

This marks the seventh day in a row that buyers pushed back against intraday selling. But not every sector participated in the gains.

The energy sector slipped again, falling 3.7%, closing deeper in the bear market.

On a related note, Warren Buffett’s Berkshire Hathaway (BRK) boosted its stake in Occidental Petroleum (OXY). An SEC filing details the fund’s $500 million purchase of about 9.5 million shares.

Shares of OXY moved higher on the news. And were the lone bright spot for the energy sector.


Image from Finviz

7 of 11 sectors closed in the green. Utilities and Healthcare were at the top, gaining more than 2% each.

Bitcoin^ is holding up above $20,000 well this morning. Our analysis says the bottom might be in.

Technicals:

The major indexes are facing resistance after forming a new base of consolidation over the past 7 trading sessions.


SPY Daily Candles – Chart via thinkorswim

The put-to-call ratio closed in neutral territory and RSI levels maintained their neutral stance.

The last indicator we track is the VIX, which has maintained a relatively high level, giving the bears an advantage.

A breakout to the high side could put the ball squarely in the bull’s court.

Timing:

Less than one week left in Q2.

Looking ahead, July is typically the best month of Q3. A strong July can lead to the big Q4 rally we’ve been eyeing all year.

Watchlist:

*Low Float
^Open Position

*CMRA has support at $4
*PEV has support at $6
*FNKO has support at $22
^CBIO has support at $1.50
PBTS has support at $1, resistance at $1.50
COGT has support at $9, resistance at $10
ALT has support at $10
KDNY has support at $18
OPTN has support between $3.25, resistance at $3.80
CYTK has support at $45
XXII has resistance at $2.60
LI is on watch
SGEN has support at $160, resistance at $175

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