“Groundhog’s Day” - 05/27/2022
*I’m doing this on mobile so apologies for the change in format*
Anyone care to remember what today looked like? I’ll give you a hint, it was a week ago. Exactly, it was last Friday where we saw this exact same move.
Today was another continuous buy fest after Futs opened up flat into today’s trading session. From my POV, this was definitely best case scenario after yesterday’s failure to break new highs after a *very* inflated MOC to Buy, adjacent to a three day weekend. From here, I really think we will begin to find it hard to break these big levels, however, this bear market rally is just what the doctor prescribed. Going into next week, I think Tuesday really sets the tone for the month of June and what we should be expecting in the near term.
A few things I did notice in today’s trading session:
1. Tech stocks, more specifically semi’s (NVDA, AMD), considerably lagged against the market this morning. I don’t think this is a coincidence given their buy up yesterday and how indicatively they helped prop the market up.
2. Biotechs are still trading in a value range and could provide good opportunities as we leave bear market/blue chip value buying. Names like SIGA are really having a hard time of seeing some violent squeezes due to the focus on some of these bigger names. Using monkey pox as an example, it’s a shocker that while monkey pox headlines still hit the tape, the whole basket of known monkey pox vaccine manufacturers (which is really anything that makes a smallpox vax) isn’t getting bought up day after day.
3. My curiousness is beginning to spike in some of these O&G names. With summer right around the corner, demand should be picking up, even with these inflated pump prices. How the President and the global market prepare for this has yet to be seen, but we could expect Biden to possibly use more reserves inventory going into June.
Enjoy the three day weekend, I think we have all earned it. Stay safe and catch you on Tuesday.