What we have seen so far is that there is still a lot of uncertainty whether OPEC will meet or not the cuts announced. What is certain is that oil rose 12% and we have seen how some service industry oil stocks (SLB, BHI, and HAL WFT) have shown significant gains.
We note that actions like APA and MRO 52week achieved new highs while PBR (probably because of the uncertainty of the Brazilian market) failed to touch the previous highs.
On the other hand, after the US elections and with a view to a plan of investment in infrastructure, the market continues to show strength in the metals sector, particularly those companies that will benefit from this.
We continue to see as FCX (copper), X (steel), CLF (iron) after showing some backsliding, marked tendency to recover later this week. We will continue to closely monitor CLF if it crosses the $ 10 and 16 FCX if it crosses the $.
Also a product of the US elections, we have seen how companies related to alternative energies have shown slowdown. The solar sector, particularly FSLR, despite reducing construction costs of solar panels, has seen falling margins, reducing earnings projections. This, combined with little support in conventional energy proposals that promotes Trump indicates weakness across the sector over the coming months. We will be monitoring FSLR in the range of $ 29 30 and as potential support in the short term. TSLA is another action that has shown weakness and despite being part of the technology sector, has a component in the portion of subsidies that may be challenged by the new administration. TSLA has shown resistance near $ 200 and 180 support near $. We will be monitoring.
Changing the technology sector, technology stocks continue our consolidated watch list after the sell off occurred after the elections.
We have seen how AAPL, FB, BABA, TWTR, NFLX NVDA and have failed to recover before the election highs. We will be watching to see if AAPL manages to overcome the range of 110-112 $ or falls to his former support of $ 100. Similarly we will look at and NFLX NVDA, both the strongest at the moment and with chance of breaking record highs.
We go to the financial sector, one of those who have shown better results after the elections. In this sector we see positive expectations continue to rise, partly boosted by rising interest rates in the US, a fact that is likely to occur before year-end. We continue to monitor opportunities to enter this sector.
As for the foreign actions we have noticed weakness after the elections, especially the Chinese. BABA seems to be consolidating near $ 90 and 160 BIDU near $, there could be an upside rebound at any time.
Our team of traders are constantly monitoring the market, preparing for the next recommendation.
Actions we are watching closely: APA, CLF, PBR, BABA upward; FSLR, AAPL, potentially TSLA down. We will keep you abreast of any relevant information that affects our watch list or open positions during the week.
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