Big Money Lifts Alliance Resource Partners

And the largest coal-based energy producer in the U.S. could jump more due to strong demand and its diversifying energy portfolio. But another likely reason is Big Money lifting the stock.

Alliance Resource Partners Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Alliance Resource Partners has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals ARLP has made over the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 27 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

Outperformance is important for leading stocks.

Alliance Resource Partners Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Alliance Resource Partners has had double-digit sales growth and strong profits. Take a look:

  • 1-year sales growth rate (+18.2%)
  • Profit margin (+11.0%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, ARLP has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

ARLP has a lot of qualities that are attracting Big Money. It’s made the Top 20 report five times this year, with its first appearance on 05/03/2022…and gaining 42.3% since. The blue bars below show when Alliance Resource Partners was a top pick over the last year:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if ARLP makes additional appearances in the years to come. Let’s tie this all together.

Alliance Resource Partners Price Prediction

The Alliance Resource Partners rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend yield of 6.3%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in ARLP at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Breaking Down ETFs – What They Are And How They Help Build Wealth

The idea of pooling investment assets has been around for centuries.  Mutual Funds first appeared in the 1920s.  But it wasn’t until the 1980s that mutual funds became widely popular with mainstream investors. In recent years, ETFs have taken off as an alternative to mutual funds.

An exchange-traded fund (ETF) is a “basket” of stocks, bonds, or other financial instruments that gives convenient exposure to a diverse range of assets.  ETFs are an incredibly versatile tool that can track anything from a particular index, sector, or region to an individual commodity, a specific investment strategy, currencies, interest rates, volatility, or even another fund.  You can do about anything with them — hold a diversified portfolio, hedge, focus on a particular sector, or even profit in a bear market.

The most significant practical difference between mutual funds and ETFs is that ETFs can be bought and sold like individual stocks —and mutual funds cannot.  Mutual funds can only be exchanged after the market closes and their Net Asset Value (NAV) is calculated.  Shares of ETFs can be traded throughout regular market hours, like shares of stock.

Both mutual funds and ETFs have expense fees that can range from low to high.  Mutual funds can have front or backend loads or redemption fees in addition to management fees.  ETFs that trade like shares have commissions to buy and sell.  But some ETFs are so popular that brokers offer commission-free trading in them.

So Many Choices

The sheer number and variety of ETFs can be a bit mind-boggling.  Over the last 20 years, we’ve seen just a couple hundred ETF offerings grow to more than 8,000 worldwide, encompassing more than 10 trillion in assets.

A surprising number of ETFs have failed.  They started with an interesting focus (well, “interesting” to somebody) but failed to attract enough interest to remain viable.  For this very reason, I avoid narrow niche ETFs that trade with low volume.

I eliminate many ETFs on poor liquidity alone.  I’m not interested if there’s not much volume in a product.  I don’t want to suffer high slippage from wide bid/ask spreads.  I want to get in and out quickly and at fair prices.

To Leverage or Not to Leverage?

Inverse and leveraged ETFs often use derivatives like options, futures, and short-term contracts to achieve 2x or 3x the daily change in the assets they’re intended to track. These types of instruments have inherent time decay, and they tend to lose value over time, regardless of what happens in the index or benchmark that the ETF tracks. As a result, these products are best for very short holding periods or day trading.

Options on ETFs

Many ETFs have options (puts and calls) available.  But even if the ETF itself trades with decent volume, that does not mean that the options meet my criteria for liquidity.

Sometimes I will use long options – puts or calls — if a clear directional move is in play.  I also use many of my option premium selling strategies on popular ETFs.   Just like with stocks, options can be used with ETFs for additional leverage, collecting premiums for income, and risk management.

An ETF Playlist

Here are some of my favorite ETFs and how I use them.

SPY, QQQ, IWM – Major index ETFs with huge participation. I use options strategies with these to collect premiums or profit from longer-term directional moves.

XLE, XLF, XHB, IYT, XLU, SMH – Sector Exposure. These can work well for directional trades in specific sectors. I like these sector plays as they can give a lot of protection against individual stock risk.

DBC, USO, UNG, WEAT, GLD, SLV, COPX, GDX, URA – Commodity Exposure. All of these can work well when the underlying commodities are appreciating. I tend to use these with option premium selling strategies such as covered calls and diagonal spreads.

TQQQ – Triple leveraged to the QQQ. This very popular ETF can work well to capture very short-term bullish moves in the Nasdaq 100 stocks.

SQQQ – This is the companion inverse ETF to TQQQ. It is triple-leveraged and inverse to QQQ. Long calls on SQQQ can work well to capture gains from a very short-term down move. Timing is everything in short-term trading, so I get in and out quickly, with trades lasting no more than a few days.

UUP – US Dollar Index. This can be a real winner when stocks are weak and the dollar is strong. Implied volatility on options is relatively low, so buying call options can work well if you catch a directional move. Using calls can give about 10x leverage; for example, a 3% increase in UUP might yield around a 33% gain for an in-the-money call option.

Technical Analysis

Whether an individual stock or an ETF, my answer for when to buy or sell is always based on price action. We only want to hold assets that are increasing or at least keeping their value while avoiding assets that are in decline. And the toolset to evaluate price action is technical analysis. The same technical analysis we use for stocks works just as well for the more popular ETFs.

Want to Learn More About Options Trading?

Every day on Options Trading Signals, we do defined risk trades that protect us from black swan events 24/7. Many may think that is what stop losses are for. Well, remember the markets are only open about 1/3 of the hours in a day. Therefore, a stop loss only protects you for 1/3 of each day. Stocks can gap up or down. With options, you are always protected because we do defined risk in a spread. We cover with multiple legs, which are always on once you own.

If you are new to trading or have been trading stock but are interested in options, you can find more information at The Technical Traders – Options Trading Signals Service. Brian, who has been trading options for almost 20 years, sends out real live trade alerts on actual trades, such as TSLA and NVDA, with real money. Ready to subscribe, click here:  TheTechnicalTraders.com.

Enjoy your day!

Chris Vermeulen
Founder & Chief Market Strategist
TheTechnicalTraders

Big Money Capturing California Resources Corporation

And the energy company focused on emissions reduction could soar even higher due to the possible extension of carbon capture tax credits. But another likely reason is Big Money lifting the stock.

California Resources Corporation Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And California Resources Corporation has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CRC has made the last year. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 10 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

California Resources Corporation Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, California Resources Corporation has been growing sales at double-digit rates and is quite profitable. Take a look:

  • 1-year sales growth rate (+59.4%)
  • Profit margin (+23.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, CRC has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

CRC has a lot of qualities that are attracting Big Money. It made the Top 20 report for the first time this year, with its initial appearance on 03/29/2022, though dipping 18.6% since. Still, given Big Money’s long-term track record, CRC may well prove to be a gem over time. The blue bars below show when California Resources Corporation was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CRC makes additional appearances in the years to come. Let’s tie this all together.

California Resources Corporation Price Prediction

The California Resources Corporation rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a more than 1.7% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CRC at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

HF Sinclair Attracts Big Money

And the independent fuel maker and refiner could soar even higher due to strong sales and a healthy dividend. But another likely reason is Big Money lifting the stock.

Big Money Energizes HF Sinclair

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And HF Sinclair has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals DINO has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 12 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

HF Sinclair Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, HF Sinclair has been growing sales at double-digit rates and has an attractive valuation. Take a look:

  • 1-year sales growth rate (+64.5%)
  • Forward price-to-earnings ratio (+5.5x)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, DINO has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

DINO has a lot of qualities that are attracting Big Money. It made the Top 20 report for the first time, with its initial appearance on 05/17/2022…and dipping -0.9% since. Still, Big Money may have a new long-term gem on its hands. The blue bars below show when HF Sinclair was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if DINO makes additional appearances in the years to come. Let’s tie this all together.

HF Sinclair Price Prediction

The HF Sinclair rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a nearly 3.4% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in DINO at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

China Stocks Are Ready For the Next Bull Run As Wyckoff Accumulation Is Near Completion

A silver lining showed up after the deeply oversold condition in the stock market last week where a number of the bullish tell-tale signs as explained in the video at the bottom of this post pointed to a countertrend rally off the extreme bearish sentiment.

On the other hand, China stocks as represented via Invesco Golden Dragon China ETF (PGJ) and KraneShares CSI China Internet ETF (KWEB) have started the bottoming process in March 2022 and outperformed S&P 500 since May 2022.

Using Wyckoff Method to Spot the Accumulation Pattern in KWEB

This is significant because after losing the energy sector (XLE) as the leadership in the stock market in mid of June 2022, China stocks could potentially be the next leader to start the next bull run. Only when the group takes charge as the leader, individual stocks are more likely to sustain their uptrend. Let’s adopt the Wyckoff method find out the potential accumulation structure as shown in the chart below.

After a parabolic run up created a buying climax off the top in Feb 2021, KWEB had a distribution on the way down from the peak at 97 followed by a down trend lasted till May 2022 as shown in the down channel.

The first clue of the potential accumulation process showed up in March 2022 where capitulation was seen as reflected in the spike of the volume (annotated in blue arrow). A selling climax was created followed by an automatic rally, which defined the trading range between 20-33. The automatic rally was considered as a Wyckoff change of character, which temporarily stopped the down trend into a trading range as it is the biggest up wave since the downtrend started in February 2021.

The subsequent reactions in May 2022 (highlighted in blue) were accompanied by increasing of volume yet still forming a higher low, suggested supply absorption.

On 31 May 2022 KWEB decisively broke above the down channel followed by a decent rally tested the resistance at 31. This was the first time it broke out the down channel, suggested change of trend is on the way.

The tight consolidation in June 2022 after hitting the resistance at 33 was shallow and committed above the immediate support level at 30. Increase of the volume during the consolidation suggested supply absorption, similar to May’s reaction, but at a higher level.

The above are all the bullish characteristics of accumulation of KWEB shares while the market sentiment is extremely bearish.

A breakout and commitment above 33 in KWEB will mark the completion of the accumulation since the selling climax on 14 Mar 2022 and likely to start a major sign of strength rally to test 40 before another reaction. The next price targets for KWEB are 50 and 60.

Should KWEB fail to hold at the support at 30, the duration of the accumulation process is to be extended in the trading range 20-33.

Spot The Rally Before It Happens from The Extreme Bearish Sentiment

As mentioned at the beginning of this post, watch the video below to find out how to look for the bullish tell-tale signs to anticipate the rally happened last week while the stock market sentiment was extremely bearish.

Although the short-term direction is up for the S&P 500, it is still a bear rally from the down trend started in January 2022. Visit TradePrecise.com to get more stock market insights in email for free.

Cenovus Energy Attracts Big Money

And the energy firm could increase even more due to recent acquisitions and a healthy dividend. But another likely reason is Big Money lifting the stock.

Big Money Likes Cenovus

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Cenovus has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CVE has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 26 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Cenovus Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Cenovus has been growing sales well and is affordably priced. Take a look:

  • 3-year sales growth rate (+78.1%)
  • Forward price-to-earnings ratio (+6x)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, CVE has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

CVE has a lot of qualities that are attracting Big Money. It’s made the Top 20 report four times in the last year, with its first appearance on 01/25/2022…and gaining 31.4% since. The blue bars below show when Cenovus was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CVE makes additional appearances in the years to come. Let’s tie this all together.

Cenovus Price Prediction

The Cenovus rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a current dividend of more than 1.7%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CVE at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Dives into Antero Resources

And the independent U.S. energy company could jump even more due to strong investor interest and planned share repurchases. But another likely reason is Big Money lifting the stock.

Antero Resources Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Antero Resources has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals AR has made the last year.

The last few months have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 26 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Antero Resources Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Antero Resources has been growing sales at double-digit rates and has a solid earnings outlook. Take a look:

  • 3-year sales growth rate (+37.4%)
  • 2-year vs. 1-year EPS growth estimate (+22.2%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, AR recently became a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

AR has a lot of qualities that are attracting Big Money. In fact, it just made the Top 20 report for the first time on 03/01/2022…and gained 43.9% since. Big Money may have a new gem on its hands. The blue bars below show when Antero Resources was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if AR makes additional appearances in the years to come. Let’s tie this all together.

Antero Resources Price Prediction

The Antero Resources rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in AR at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Magnolia Oil & Gas Sees Big Money

And the oil and natural gas company could increase even more due to strong sales and profits. But another likely reason is Big Money lifting the stock.

Big Money Likes Magnolia Oil & Gas

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Magnolia Oil & Gas has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals MGY has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart

Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 18 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Magnolia Oil & Gas Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Magnolia Oil & Gas has been growing sales well and is profitable. Take a look:

  • 1-year sales growth rate (+99.2%)
  • 3-year sales growth rate (+21.6%)
  • Profit margin (+38.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, MGY has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

MGY has a lot of qualities that are attracting Big Money. It’s made the Top 20 report four times since 2017, with its first appearance on 03/08/2022…and gaining 0.8% since. The blue bars below show when Magnolia Oil & Gas was a top pick:

Chart, histogram

Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if MGY makes additional appearances in the years to come. Let’s tie this all together.

Magnolia Oil & Gas Price Prediction

The Magnolia Oil & Gas rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 1.6% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in MGY at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Likes Continental Resources

And the energy exploration firm could increase even more due to strong performance and a recent “take private” bid. But another likely reason is Big Money lifting the stock.

Continental Resources Attracting Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Continental Resources has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CLR has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 18 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Continental Resources Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Continental Resources has been growing sales well and is profitable. Take a look:

  • 1-year sales growth rate (+124.8%)
  • 3-year sales growth rate (+26.1%)
  • Profit margin (+28.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, CLR has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

CLR has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 39 times since 2007, with its first appearance on 12/31/2007…and gaining 416.3% since. The blue bars below show when Continental Resources was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CLR makes additional appearances in the years to come. Let’s tie this all together.

Continental Resources Price Prediction

The Continental Resources rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a current dividend of more than 1.6%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CLR at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Here Is a Silver Lining for The Looming Stock Market Crash

The breakdown in S&P 500 with spike of volume on 13 June 2022 followed by a weak rally up after the Fed’s FOMC pointed to the bearish scenario. The current market development is similar to the global financial crisis in 2008 in terms of both price structure and the market rotation sequence as explained in the video at the bottom of this post.

Using Wyckoff Method to Spot the Silver Lining

After a more than 10% drop in 6 trading sessions, S&P 500 is right at a vulnerable spot where a stock market crash could easily be triggered. Over the weekend, Bitcoin broke below the support at 20000 suggested a continuation of the risk-off mode into the coming week.

However, there is still a silver lining for the looming stock market crash when adopting the Wyckoff trading method to spot the tell-tale signs for a potential short-term rally. Refer to the chart below.

Since the breakdown of the short-term support at 4080 on 9 Jun 2022, shortening of the thrust to the downside was observed (as annotated in blue) along with decreasing of the volume suggested exhaustion of the down momentum.

S&P 500 is currently testing the oversold line of the down channel, which could prone to a relief rally out from the oversold condition. The rebound off the channel oversold line happened in the past on 24 January 2022, 24, February 2022 and 20 May 2022.

The two price targets based on the Point and Figure chart are 3900 followed by 3650. In May 2022, after the first price target of 3900 was hit, S&P 500 stopped the down move and consolidated for one month. The fulfilment of the second price target at 3650 provides a condition for S&P 500 to attempt to rally when interpreting with the technical details as explained above.

Even if S&P 500 starts to rally up as illustrated in the green path, it is crucial to monitor how the price reacts at the key levels such as 3800 followed by the gap resistance zone near 3900 (annotated in red line). Any failure along the way could signal the end of the rebound and the beginning of an impulsive down move.

Should the short-term rebound fail to materialize, a break below the recent low at 3640 and a commitment below the oversold line of the down channel could trigger a capitulation, which could lead to a stock market crash similar to 2008’s situation as detailed in the video at the bottom of this post.

Bullish Divergence Between S&P 500 and The Market Breadth

A bullish divergence between S&P 500 and the market breadth (percent of stocks above 50-day average) was observed, as shown in the chart below.

A bullish divergence was observed near end of January 2022 till mid of March 2022 (annotated in orange) where the market breadth formed a higher low while S&P 500 formed a lower low. Subsequently a strong rally kicked start after the bullish divergence.

Similarly, between 12-20 May 2022, a bullish divergence was formed followed by a relief rally tested the resistance zone near 4200.

Now, a potential bullish divergence is unfolding from May till now. A meaningful rally in S&P 500 would mark the third successful bullish divergence.

Stock Market Crash Comparison 2022 vs 2008

When the silver lining fails along the way or even at the beginning, S&P 500 is likely to enter into market crash mode similar to the global financial crisis in 2008.

Watch the video below to find out the similarities of the stock market crash in 2008 from the price structure to the market rotation sequence.

The sign of weakness in the energy sector (XLE) started last week further strengthened this market crash analogue. Visit TradePrecise.com to get more stock market insights in email for free.

Talos Energy Brings in Big Money

And the upstream energy company could jump even more due to strong earnings and valuable partnerships. But another likely reason is Big Money lifting the stock.

Big Money Likes Talos Energy

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Talos Energy has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals TALO has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 17 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Talos Energy Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Talos Energy has been growing sales at double-digit rates and has a solid earnings outlook. Take a look:

  • 3-year sales growth rate (+26.4%)
  • 2-year vs. 1-year EPS growth estimate (+17.5%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, TALO recently became a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

TALO has a lot of qualities that are attracting Big Money. In fact, it just made the Top 20 report for the first time on 04/19/2022…and gained 20.9% since. Big Money may have a new gem on its hands. The blue bars below show when Talos Energy was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if TALO makes additional appearances in the years to come. Let’s tie this all together.

Talos Energy Price Prediction

The Talos Energy rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in TALO at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Builds New Fortress Energy

And the energy infrastructure company could jump even more due to strong earnings and newfound demand from geopolitical tensions. But another likely reason is Big Money lifting the stock.

New Fortress Energy Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And New Fortress Energy has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals NFE has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 14 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

New Fortress Energy Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, New Fortress Energy has been growing sales at triple-digit rates and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+133.4%)
  • 3-year EPS growth rate (+26.6%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NFE recently became a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NFE has a lot of qualities that are attracting Big Money. In fact, it just made the Top 20 report for the first time on 04/12/2022…and gained 3.2% since. Big Money may have a new gem on its hands. The blue bars below show when New Fortress Energy was a top pick since it began trading in 2019:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if NFE makes additional appearances in the years to come. Let’s tie this all together.

New Fortress Energy Price Prediction

The New Fortress Energy rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a more than 0.9% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in NFE at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Best ETFs To Buy In 2022

Key Insights

  • QQQ will gain strong upside momentum in case the broader market starts to rebound. 
  • XLE has a good chance to continue its strong move as demand for energy increases during the summer season. 
  • GDX could serve as a defensive asset if markets find themselves under pressure in the second half of the year and demand for gold increases. 

Global markets remain volatile, and many investors are searching for safer options to protect their funds. ETFs offer an easy way to get exposure to indexes or market segments without picking individual stocks. In this article, we’ll take a look at several ETFs which could provide interesting opportunities this year.

Invesco QQQ Trust

Invesco QQQ Trust has been under significant pressure since the start of this year as traders moved away from higher-PE stocks. As a result, QQQ is down by more than 20% year-to-date.

QQQ dynamics are driven by the dynamics of leading tech stocks like Apple, Microsoft, Amazon, and Tesla, which are trading at a discount to their recent price levels.

In case the general market mood improves in the second half of the year, money would flow back into these stocks, which will be bullish for QQQ.

Energy Select Sector SPDR Fund

Energy Select Sector SPDR Fund enjoyed strong upside momentum this year as energy prices increased.

XLE is heavily focused on Exxon Mobil and Chevron, although it also has services stocks like Schlumberger and refiners like Marathon Petroleum among its holdings.

While Exxon Mobil and Chevron are trading at all-time highs, they are valued at roughly 12 forward P/E and have a good chance to gain additional upside momentum in case WTI oil spends this summer above the $120 level.

VanEck Gold Miners ETF

Gold has lost a lot of ground after touching highs near $2070 in March, so it’s not surprising to see that VanEck Gold Miners ETF has been under pressure in recent months.

GDX is a good bet on the gold price rebound which would be useful in case gold starts to move back towards its yearly highs due to increased uncertainty.

It should be noted that gold prices have moved lower due to rising Treasury yields, but it remains to be seen whether rates will continue to rise at a fast pace as the economy would face material problems if the 10-year Treasury yield settles above the 3.50% level. If Treasury yields settle in the 3.00% – 3.50% level, gold will have a good chance to gain upside momentum.

To keep up with the latest earnings updates, visit our earnings calendar.

Big Money Eyeing Northern Oil and Gas

And the independent energy company could increase even more due to strong earnings and a growing dividend. But another likely reason is Big Money lifting the stock.

Northern Oil and Gas Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Northern Oil and Gas has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals NOG has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted 18 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Northern Oil and Gas Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Northern Oil and Gas has been growing sales well, and the earnings outlook is strong. Take a look:

  • 3-year sales growth rate (+58.8%)
  • 2-year vs. 1-year EPS growth estimate (+27.8%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NOG has been a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NOG has a lot of qualities that are attracting Big Money. It’s made the Top 20 report five times since 2020, with its first appearance on 07/06/2021…and gaining 69.4% since. The blue bars below show when Northern Oil and Gas was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if NOG makes additional appearances in the years to come. Let’s tie this all together.

Northern Oil and Gas Price Prediction

The Northern Oil and Gas rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 2.3% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in NOG at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Powers PDC Energy

And the independent energy exploration and production company could rise even more due to strong demand and a healthy dividend. But another likely reason is Big Money lifting the stock.

PDC Energy Attracts the Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And PDC Energy has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals PDCE has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 11 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

PDC Energy Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, PDC Energy has been growing sales at triple-digit rates and sports a nice profit margin. Take a look:

  • 1-year sales growth rate (+120.7%)
  • Profit margin (+20.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, PDCE has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

PDCE has a lot of qualities that are attracting Big Money. It’s made the Top 20 report five times since 2015, with its first appearance on 09/22/2015…and gaining 49.3% since. The blue bars below show when PDC Energy was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if PDCE makes additional appearances in the years to come. Let’s tie this all together.

PDC Energy Price Prediction

The PDC Energy rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 1.4% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in PDCE at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Fills Up on National Fuel Gas

And the diversified energy company could rise even more due to rising sales and a current dividend of more than 2.6%. But another likely reason is Big Money lifting the stock.

National Fuel Gas Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And National Fuel Gas has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been jumping on the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at how the Big Money has started buying NFG recently. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted five Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

National Fuel Gas Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, National Fuel Gas has been growing sales at double-digit rates and is quite profitable. Take a look:

  • 1-year sales growth rate (+26.5%)
  • Profit margin (+19.9%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NFG has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NFG has a lot of qualities that are attracting Big Money. It’s already made the Top 20 report three times this year, with its first appearance on 03/08/2022…and gaining 8.3% since. The blue bars below show when National Fuel Gas was a top pick:

Source: www.mapsignals.com

It’s becoming a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if NFG makes additional appearances in the years to come. Let’s tie this all together.

National Fuel Gas Price Prediction

The National Fuel Gas rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a current dividend of more than 2.6%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in NFG at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Explores Comstock Resources

And the independent energy company could rise even more due to strong sales growth. But another likely reason is Big Money lifting the stock.

Comstock Resources Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Comstock Resources has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CRK has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 13 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Comstock Resources Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Comstock Resources has been growing sales at big clips and has a favorable earnings outlook. Take a look:

  • 1-year sales growth rate (+115.7%)
  • 3-year sales growth rate (+74.8%)
  • 2-year vs. 1-year EPS growth estimate (+22.1%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, CRK has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

CRK has a lot of qualities that are attracting Big Money. It’s made the Top 20 report six times since 2020, with its first appearance on 10/05/2021…and gaining 42.4% since. The blue bars below show when Comstock Resources was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CRK makes additional appearances in the years to come. Let’s tie this all together.

Comstock Resources Price Prediction

The Comstock Resources rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CRK at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Markets Remain in Fight or Flight Mode While Rolling the Dice on Recession Odds

Global Macro and Stock Markets Analysis

US equities fell .4 % in a choppy session to start the week with little change to the broader macro or recessionary narrative.

Markets remain in fight or flight mode while rolling the dice on recession odds.

Still, traders seem to be in the mood to stay bearish until proven otherwise. However, there is still a lingering risk- on tone despite horrific Chinese data.

Investors’ hopes remain elevated that yesterday’s worse than expected Chinese outruns could prove to be a ‘whatever it takes” moment, and local policymakers will step hard on the stimulus pedal.

Oil Fundamental Analysis

Oil prices are up near 2.5 % on a confluence of anticipated Chinese demand returning amid Russian supply concerns. But China’s covid slowdown is music to oil bull’s ears as the breadth of the shift is where the surprise lies.

In addition, Shanghai has announced a gradual reopening starting immediately. It aims to return to everyday life by June 1, so we should expect mobility to return to its usual post haste.

But importantly, this could mean more stimulus down the pipe as even a gradual reopening increases the prospects for policy easing.

China’s official institutions have been reluctant to enact an adequate stimulus program as the locked-down economy is not giving policymakers bang for their buck via the multiplier effect.

Oil investors will continue watching the China covid curve while playing the China rebound story through Oil futures and XLE.

FOREX Fundamental Analysis

Chinese Yuan CNH

Traders have moved off, at least this one has, the CNH/JPY competitive advantage trade as a motive to sell the Yuan. And are now looking at the typical RMB correlation associated with local equity markets.

While a depreciating RMB is theoretically positive for export-oriented firms, it is generally associated with lacklustre overall share market performances.

With a good chance, policymakers could use yesterday’s economic data low point as a watershed moment to release a flood-like stimulus once the economy opens. There should be a positive bounce in Chinese equities and possibly change the tide for USDCNH. But mainland stocks will need to do the heavy lifting, not the PBoC

Japanese Yen

For the yen, the tide may be starting to turn. The Japanese currency broke nine successive weeks of losses against the US dollar last week.

There has been a notable change in how the pair operates in the last week.

US rates had been behind the currency moves – pushing the US dollar higher against the yen, euro, franc, and Aussie.

Now the drivers are more technical. When rates go up and equities go down – the S&P 500 had fallen 6.4% since May 4 when the Federal Reserve lifted rates by 0.5 percentage points – dollar-yen is not rallying as much. Instead, it is now trending down.

Traders want to buy the yen – and the classic ‘risk-off’ hedge of holding yen calls. Again, this is rolling the dice on US recession odds which could cause a significant spill across the global markets.

For a look at all of today’s economic events, check out our economic calendar.

Best Stocks to Battle Inflation Fears for May 2022

As such, we’ve seen big selling over the past six months by Big Money investors like institutions and pension funds. Inflation and equity downturns can be a nasty combo punch for investors, and we’re seeing it now.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, tracks the Big Money because we believe that’s what tends to move markets. Right now, there’s huge selling (red bars) and an almost complete lack of buying (blue bars):

But there have been some sectors doing well despite the mass market downfall. Three are energy, materials, and utilities. They’re rising because of inflation and the current geopolitical situation’s effect on supply chains.

Chart, histogram Description automatically generated

But that doesn’t mean the only winners are there, just that those sectors are generally benefiting from current market conditions. See, when it comes to inflation, investors need stocks that can handle storms. Those tend to be strong, big companies with healthy balance sheets as well as pricing power that enables paying dividends. Here are five stocks that can go a long way to help battle inflation: ADM, MOS, CTVA, EOG, and JNJ.

Archer-Daniels-Midland Company (ADM) Analysis

Up first is Archer-Daniels-Midland, the agricultural commodities giant.

Companies with pricing power can do well in inflationary environments. With ADM focused on food staples and suffering from supply chain issues, it is experiencing elevated prices and strong demand at the same time. It’s weathered the storm well and pays a nearly 1.9% current dividend. Stocks like ADM are worthy of attention, especially on pullbacks. Check out Archer-Daniels-Midland:

  • 1-month performance (-10.8%)
  • Year-to-date performance (+25.0%)
  • Recent Big Money buy signals

To show you what our Big Money signals look like on a stock, have a look at all the buys in ADM over the past year:

Looking more broadly, Archer-Daniels-Midland has been a high-quality stock for years. The blue bars in the chart below show when ADM was a high-ranking stock likely being bought by a Big Money player, according to MAPsignals. When you see a lot of blue, like ADM has recently, it can be very bullish:

Source: www.MAPsignals.com

Those blue signals indicate Big Money buying and solid fundamentals. As you can see, Archer-Daniels-Midland’s sales and earnings growth have been strong, making it worthy of attention:

  • 1-year sales growth rate (+32.4%)
  • 3-year EPS growth rate (+19.1%)

The Mosaic Company (MOS) Analysis

Next up is Mosaic, a fertilizer and feed company that pays a nearly 0.8% current dividend.

Check out these technicals for MOS:

  • Year-to-date performance (+51.0%)
  • 1-month performance (-19.6%)
  • Recent Big Money buy signals

As markets have turned from growth to value and geopolitical tensions have risen, stocks in certain sectors, like materials, have benefitted. MOS is definitely one of those, as you can see the Big Money buying that’s been prevalent the last year:

Now let’s look long-term. Below are the top buy signals for Mosaic since 2009. The Big Money has been on it in waves:

Source: www.MAPsignals.com

Now let’s look under the hood. As you can see, Mosaic has had strong recent sales growth and owns a healthy profit margin:

  • 1-year sales growth (+42.3%)
  • Profit margin (+13.2%)

Corteva Inc. (CTVA) Analysis

Another inflation-beating name is Corteva, an agricultural firm focused on solving the world’s biggest food challenges. It currently pays a 1.0% dividend.

Strong inflation-beating stocks almost always have Big Money buying support. Corteva has had that in the past year, and its recent dip may provide an attractive buy opportunity.

  • Year-to-date performance (+13.0%)
  • 1-month performance (-10.3%)
  • Historical Big Money signals

Below are the blue Top 20 Big Money buy signals CTVA has made in the last year. Look at how Big Money drives up prices. That’s the JUICE!

Source: www.MAPsignals.com

Let’s look deeper. Earnings growth for Corteva has been impressive. I expect more of the same in the coming years. Its minimal debt is also encouraging for the future.

  • 3-year EPS growth rate (+121.9%)
  • Debt/equity ratio (+6.2%)

EOG Resources, Inc. (EOG) Analysis

Number four on the list is EOG Resources, which is a low-cost oil and natural gas company. It currently pays a dividend of slightly more than 2.5%.

Here are the technicals important to me:

  • 1-month performance (-2.6%)
  • Year-to-date performance (+36.5%)
  • Historical Big Money signals

With the energy sector on a rise for a while, EOG has seen a lot of Big Money buying:

Given that, it’s not surprising EOG Resources is a Big Money favorite recently. But it’s been like that for some time. Below are the Big Money Top 20 buy signals for EOG since 2004:

Source: www.MAPsignals.com

Let’s look under the hood. EOG Resources sales have jumped quite a bit and its profit margin keeps investors happy:

  • 1-year sales growth rate (+99.1%)
  • Profit margin (+23.6%)

Johnson & Johnson (JNJ) Analysis

Our last inflation beater is Johnson & Johnson, the health care giant. It’s involved in many aspects of health care and pays a nearly 2.6% dividend currently. JNJ has been strong since markets got rocky last fall:

Check out these technicals:

  • 1-month performance (-2.1%)
  • Year-to-date performance (+3.0%)
  • Historical Big Money signals

JNJ is a high-quality stock. It’s made the MAPsignals Top 20 buy report 113 times since 1990. As you can see below, it’s been a Big Money favorite:

Source: www.MAPsignals.com

Now let’s look below the surface a bit. JNJ sales have been growing, it’s highly profitable, and the stock is not too expensive right now:

  • 1-year sales growth rate (+13.5%)
  • Profit margin (+22.3%)
  • Forward price-to-earnings ratio (+17.2x)

Bottom Line

ADM, MOS, CTVA, EOG, and JNJ represent the best stocks to battle inflation for May 2022. This group has been able to handle volatile markets well. They’re strong, fundamentally-sound stocks that pay dividends and are set up for success in inflationary environments.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in EOG in personal and managed accounts.

Contact

https://mapsignals.com/contact/

Big Money Buys Black Stone Minerals

And the limited partnership focused on oil and natural gas mineral rights could rise even more due to strong sales and a nearly 7.1% current dividend. But another likely reason is Big Money lifting the stock.

Black Stone Minerals Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Black Stone Minerals has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been loading up on shares recently.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals BSM has made this year.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 10 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Black Stone Minerals Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Black Stone Minerals has been growing sales at double-digit rates and is projected to grow earnings as well. Take a look:

  • 1-year sales growth rate (+70.5%)
  • 2-year vs. 1-year EPS growth estimate (+20.5%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, BSM has recently become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

BSM has a lot of qualities that are attracting Big Money. It’s made this list six times this year, with its first appearance on 03/15/2022…and gaining 36.7% since. The blue bars below show the times that Black Stone Minerals was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if BSM makes additional appearances in the years to come. Let’s tie this all together.

Black Stone Minerals Price Prediction

The Black Stone Minerals rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a nearly 7.1% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in BSM at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/