By: Tom Gentile
on May 6th, 2022
The Oil Sector is at Year-to-Date Highs
The market is in e bearish slide overall with the Dow down 9.96% Year-to-Date (YTD), the NASDAQ is down 22.45%, which could be qualified as a recession for that market, and the S&P 500 is down 13.91% all at the time of this write up.
The choice is to either to go with the trend and consider going short stocks that are sliding, execute bearish options strategies or find a sector that is defying the trend and trading higher. Better than just trading higher is a situation where a stock or sector of stocks is trading at or near their 52-week highs.
I’ve written about this before where this is a tactic made popular by the creator of Investor’s Business Daily where we advocated a strategy of buying stocks at their 52-week highs. He wrote stocks are at 52-week highs for a reason and found that strength begets more strength.
That sector is Oil.
Toms Tools can Search out Stocks at or Near their 52-Week High
My options analysis suite of tools; my online software located at www.tomsoptiontools.com can search up stocks at or near their 52-week highs.
For all those that subscribe to my tools, you are in possession of this quality suite of online scanning tools, the Hi/Low scanner as well.
Log in > Hover your mouse over the Stocks Tab > Hover your mouse over the Stock Analysis line item > Left-click Hi/Low and you get to this page…
Make sure your number of weeks is 52.
You can select whichever list you want (S&P 500 Optionable is selected in the image shown).
Left click the Wizard (scan) Stocks with the Latest Highest Close for Weeks Chosen.
Left click Search.
Here is a list of the first 10 stocks on the list. They are ranked by highest percentage to lowest. 100% means it is at its 52-wk high and the numbers less that that are what percentage of the 52-wk high it is at.
You can go to the Morning Reports lists to see if any options on these are populating there or create a new list of all these oil stocks and run that list against any of the other options scans to find opportunities.
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
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