Volatility and the Stock Market
While volatility can be good on one hand, we have been concerned with navigating the choppy stock market on the other. As a result, we have narrowed our focus towards the positions that are working and eliminating or reducing the size of lagging positions. In the process, we have reduced our exposure. Existing positions have been updated in the trading room.
We will only add to the stocks that are gaining strength and fail to pull back when the markets show weakness. Going to cash is an option.
Navigating the Market with Relative Strength
One sector showing a relative strength is oil and equipment services. A number of stocks in this group have been moving higher.
Holly Frontier (HFC) broke out above recent pivots yesterday. Price action is moving above VBP bands as the stock follows through. 52.82 is the next target.
In addition, we see a Bollinger Band TTM Squeeze setup. Should Holly Frontier trigger this setup, 52-week highs are in order.
Stocks in the Group
Other stocks in the oil and gas refining industry group faired well yesterday. Below is the top five as ranked by Investors Business Daily for your use and consideration. Just make sure Price action is above the 9/20 EMA and momentum is bullish.
Stocks in the oil and equipment services Industry group we’re higher on news out of Iran. Therefore, new positions should be monitored closely.
While we don’t think the market will retest the February 9 lows, we do anticipate volatility will persist. Reducing your exposure at this time is a prudent measure. After all, consistency and profitability are just a few of our goals.
Longevity is a concern as well. which means navigating volatile markets and having cash on hand. This will give us an opportunity when the markets start trending again.
Disclaimer: Do your Own Research
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We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.