Welcome back to a new week.
Last week was another topsy-turvy one in the markets…
With stocks initially continuing their short-term bounce in the first three days of the week before selling off heavily in the final two.
What caused this reversal?
Pick one – rising geopolitical uncertainty, 10-year Treasury yields briefly breaching the 5% mark, or Fed Chair Powell saying in a press conference that monetary policy was “not too tight”.
Still, it’s important to remember that what matters for us is the movement of individual stocks – not the broader market – especially in earnings season.
For instance, Tesla fell over 15% last week – but Netflix rose over 12%. And these are giant mega-cap stocks.
There are ALWAYS stocks that are rising even though the market is falling…
And every Monday, I spotlight three stocks that have a great chance of surging in the short term no matter what the broader market is doing.
Today is no different.
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Diamondback Energy, Inc. (FANG)
FANG is a Texas-based independent O&G company. And with geopolitical uncertainty in the Middle East surging day after day, it shouldn’t be any surprise that O&G stocks like FANG have been big beneficiaries. While the stock ended the week relatively flat, it makes this list due to the stock “gapping up” significantly at the end of the week before last on high volume – catapulting it over its 21-day moving average.
Southwestern Energy Company (SWN)
SWN is yet another Texas-based O&G company with very impressive price action. A week ago, the stock posted a huge green candle – jumping nearly 10% in a single day – after news swirled that Chesapeake Energy was possibly looking at acquiring SWN.
While the stock has come down a little since that jump, macro factors are still largely in favor of SWN. It remains comfortably above both its 21-day and 50-day moving averages. And when it reports earnings in less than 2 weeks, we could see yet another surge in this O&G stock.
Five Below, Inc. (FIVE)
Specialty discount store chain FIVE has had a tough time in the stock market this year, going on a – largely downward – choppy ride and hitting a 2023 low at the beginning of October. But since then, its stock has since surged 20%, allowing it to comfortably reclaim both its 21-day and 50-day moving averages – which bodes well for the short-term direction of this stock.
As economic conditions get tougher, investors are sweetening on FIVE’s stock. And right now, this specialty discount stock looks like it’s trading at a nice discount – something that could be quickly rectified.
To your wealth,
Felix @ Ace of Investing