Anddd the chop continues…
As we start a new month and head towards elections here’s a little reminder, it only takes 1-2 good trades a month. Opportunity has been scarce yet my account continues to grow aggressively by avoiding the noise and remaining focused on the best asymmetrical opportunities. You have to keep reminding yourself of this fact, if you want to stay focused and avoid moves out of boredom/fomo.
Whilst I still believe Robotics, Space & Biotech are likely candidates for leading themes, it’s hard to ignore the under-positioning of Oil & Gas.
This unwinding is one of the most aggressive we’ve seen in years, not to mention the extreme shorting taking place. Oil Futures remain weak and the downside risks are prices heading towards $50/barrel. I already have a position in $OXY at $50.00 whilst eyeing/researching a few others. I’ll update once I’ve made a decision on which other names I’m happy to buy.
$BMY – It’s hard to ignore the relative strength of this name following FDA approval. XBI remains at the bottom of the monthly bull flag whilst BMY begins to break away. They also have more data being released on the 10th October.
Aside from that, where are the nice setups? They’re almost non-existent at this point. So it’s a matter of having PAYtience and waiting for something to appear.
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