The Weekly Selection: 8/28/22

By: Tanner Yarton

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Twitter: @TannersTrades

Hello Chart-ists,

In the second iteration of the weekly selection, I’d like to introduce a new segment: the week in review. In this snapshot, I will show the performance of the last weeks stock ideas, as well as their performance vs the index.

When I began this newsletter last year, It came with a portfolio that I would update every week and purchase all these stocks in equal weights to track performance. I will likely bring this back, but given current market conditions I’m still being quite selective with my entries and exits.

Below is the performance Vs the index ($SPY):

Pretty good performance, with PLAB 0.00%↑ and VLO 0.00%↑ doing the bulk of the work for my portfolio this week. OXY 0.00%↑, which was not mentioned here, but instead on my twitter also assisted in a solid week.

For this week, the theme is remaining similar. The index is peering over a cliff of nothing-burger Powell meetings, inflation back on the rise and most of Europe simply unable to live with energy/electricity prices.

That being said, I will keep my list to mostly relative strength names/ energy this week, as I believe the flow will head that direction in the event the primary indexes continue their downside momentum.

Before I get into the charts, I’d also like to offer a bit of knowledge on long term outlook for investors. Times are uncertain, and with this comes many questions about whether or not the market is good enough to enter right now. While my personal theme has been to stay nimble over the last few months, its also wise to remember that some were just as fearful in May as they are now, and those same investors may have missed a respectable 15% run by SPY 0.00%↑. Always remember that time in> timing. We may get lower lows, but to be so fearful that you sit the sidelines is no way to invest, especially with outlooks exceeding next week.

Long winded intro for this week, now lets get into the charts:

XLE OXY DVN MRO VLO: Since 2020, we’ve got some leaders in the Oil and Gas field. Warren Buffet has recently taken a position in OXY, which is something, but the long term look paints a different picture, see below.

the 10 year chart sees VLO as a massive standout, with CVX and the index far behind, and all other players lagging heavily, especially OXY. When looking for a stock in a sector of interest, what profound investors sees is important, but so is your own D/D and intuition.

Not saying OXY isn’t a current leader, But when we look for long term growers and consistent performers, many timeframes must be studied. In this case, it appears DVN is the most consistent of the bunch.

Solar: A similar look for solar, lately, FSLR has been all the talk, but a longer term look shows that DQ has actually heavily outperformed in recent years, often showing strong relative strength to the index. Year to date tells a similar story:

As you can see, DQ consistently outperforming. This will be a long position for me moving forward.

Moving into the rest of the selection, we will start with RYTM

Great action from left to right here. I’d like to see a hold of 22.65 for continuation upward. Crazy strength in this market lately.

DQ as mentioned earlier, solid structure on this daily and weekly.

Similar to RYTM, ARRY has a really sound left to right chart amid market conditions. In the tech sector, it held up exceptionally on Friday, which got crushed across the board. Id like to enter on either of these downside levels, or a break of this trend upwards.

CELH, still one of my favs, breakout and retest of all time highs. Will we see a handle for this cup?

I am still long TMDX, and the relative strength here is awesome. Looking to see it continue after this ATH breakout.

Not 100% sure what to make of this, but this long standing downtrend on FREY could get juicy on a breakout.

EXTR with a respectable weekly chart + an MA cross.

PCVX With a daily breakout: potential continuation.

Lithium has been hot, LTHM is definitely a leader, or ALB

AEHR: Super tight daily, upside could send

ENPH with a breakout, new all time high, and now retest. I am long

GFS: Breakout and retest. Doesn’t look as good as it did last week.

That’s all for this week!

I’m trying to avoid big tech as much as I can with so much uncertainty, and mainly focusing on smaller breakout names to generate some kind of returns.

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