Weekly Market Watchlist — March 6, 2022
My Sunday Evening Stock Watchlist. If you want more suggestions, guidance, and education on the information below, consider subscribing to the Discord. Be sure to read through to the end to get all our insights for next week!
FOCUSED STOCK LIST:
We are going to be focusing our attention on energy and commodities, as well as short positions in technology. Our main focus will be: VALE, MRO, LMT, and TSM.
VALE: This company has many tailwinds in these geopolitical conditions being a global producer of iron ore and iron ore pellets, key raw materials for steelmaking, and producer of nickel. They have a market share of steel production as well as alternative energy sources to oil which will likely be used as a substitution as oil prices continue to get squeezed higher. VALE $20 Calls for Friday.
LMT: With the ongoing geopolitical tension and likely the start of broader implications, defence has a strong tailwind and LMT is setting up in a very strong bull flag basing formation. We look to take out Fridays highs at $462.66 to hit price targets at $478.85, $492.33, $509.50, and $559 using LMT $500 Calls for Friday (Out-of-the-money).
MRO: With oil prices surging over the weekend and nice bull flag forming on the daily chart and 170% relative volume in Fridays session. We also just broke out of the consolidation as indicated by the TTM Squeeze on daily chart. Price targets are $25.60, $26.90, and $30.72. MRO $24 Calls for Next Friday (At-the-money)
TSM: TSM continues to see weakness and we will look for a breakdown on Friday sessions Low-of-day at $103.81 for put positioning. Tiawan is under the global eye as China is likely to invade following the Ukraine invasion. TSM would likely take an even bigger hit on this and IV is not yet very high relative to historical volatility. TSM $100 Puts for Friday.
Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
