BA & XOM.....Wow, these stocks are incredibly oversold.


This morning we highlighted how Boeing (BA) has become very, very oversold. Of course, BA was already facing serious problems before the coronavirus breakout took place, so it’s incredibly tough to try to pick the exact bottom for this stock. In fact, we highlighted recently that XOM had also become VERY oversold, but after a one-day bounce, the stock fell another 7%. So as the old saying goes, it’s VERY tough to “catch a falling knife!” (BTW, XOM is still very oversold…and more oversold by some readings than BA right now.)

Therefore, short-term traders are going to have a very tough time trying to “day-trade” in either one of these stocks…when they’re looking for a sharp short-term bounce. We SHOULD indeed get a “sharp short-term bounce” at some point in both of these names, but it’s incredibly difficult to figure out when that will happen.

However, for those traders who have a time horizon that is more intermediate-term based (and for long-term investors as well), picking away at these names at current levels could/should be a good idea. They should not jump-in with both feet, but if they buy some now…and hold plenty of dry powder so that they can buy more shares at several other (lower) levels…they should be able to profit handsomely when these stocks finally bounce in a significant way. In other words, the eventual bounces should be quite powerful…and should take BA and XOM well above their current levels (even if they fall further over the very short-term). Those who buy these names at various prices will have a nice (low) average cost in both of these stocks…and should be able to take advantage of an inevitable (outsized) bounce in BA & XOM.

The weekly RSI charts on both names are provided below. They ...

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Morning Comment: Will the U.S. Follow Europe?


WHAT AN UNBELIEVABLE DAY YESTERDAY!!!!! Tom Brady decided to leave the Patriots!!!!.......Oh yeah…the stock market rallied 6% too after a large fiscal plan was proposed….BUT TOM BRADY LEFT THE PATRIOTS!!!!!

Of course, SOME people will try to say ...

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Morning Comment: Panic At Your Own Risk


  • Are “the authorities” causing a panic?
  • The reaction is so much different that it was after 9/11.
  • Despite turning bearish earlier than most, we’re actually not as bearish as a lot of people this morning.
  • Signs of capitulation and ...
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Exxon (XOM): Incredibly Oversold


A very smart person we know told us he bought XOM yesterday. He did not follow that up by trying to sell us on this fact, so he was not “talking his book.” He simply stated the fact that ...

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Morning Comment: More Than a 1-Day Bounce This Time?


In our Morning Comment yesterday morning, we highlighted several signs of capitulation that we were observing. We also said that although a near-term bottom might not come immediately (Thursday), we did expect one to begin very, very soon. Well, we ...

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Morning Comment: The Stock Markets Reacting the Way it Should


The news that the Trump administration was going to come forward with a fiscal stimulus plan that includes a payroll tax cut (and maybe even some relief for the energy industry) helped the stock market (which had become quite oversold ...

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Morning Comment: It's About the Credit Markets Now.



Well, we just got a true shock to the stock market. As we said over the weekend, stock investors had several weeks to react to the outbreak of the coronavirus. The moves in other asset prices (like gold and especially ...

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Thursday midday Comment: Short-Term Support/Resistance



The S&P 500 Index is trying to hold its 200 DMA (which is just above 3050). To be honest, the 200 DMA didn’t provide much support in last week’s late-week decline…and didn’t provide a lot of resistance on the days ...

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Morning Comment: Credit Spreads Are Still Raising Concerns


  • Nice “Biden rally,” but a short squeeze provided A LOT of fuel as well.
  • Despite the rally in stocks, Treasury yields and gold prices did not respond in-kind.
  • We also did not see much of a tightening of credit ...
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Midday Comment (very quick)


Our call for a sharp short-term bounce has worked-out very well so far. The S&P now stands a full 6% above its intraday lows from Friday! However, when it got up to its 200 DMA today, the S&P stalled-out. Therefore ...

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Morning Comment: Ripe for a SHORT-TERM Bounce Soon

The futures have been trading all over the place since they opened last evening at 6:00pm. When we went to bed last night, they have been down by more than 1%...then they flipped to the upside overnight and ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) A recession will mean another credit crisis…even if its smaller than the last one.

2) Victory lap! Also, if you read our work regularly, we hope you will support us.

3) We ...

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