Taking a look at the market trend, and an oil refiner that’s breaking out. (March 11, 2022)
SPY QQQ MPC
Another crappy week in the market ( NYSEARCA: SPY ), the downtrend just keeps prevailing. At some point, we are going to get a big rebound that is going to reverse all of this but I don’t think that point is coming next week, I think it is going to be a while. It will take quite a while for the demand, for buyers, to soak all the supply from people that were riding the slope of hope down. This is a tough market ( NASDAQ: QQQ ) for you if you continue to try and trade it. If you are just trying to trade all of the volatility, it’s pretty tough for you.
On the other hand, if you have a process, if you are sitting here cooling your jets you are seeing that maybe this isn’t my market because I don’t like to lose money. Then you are sitting here and you’ve got your powder dry and you are just waiting for your train to come by. The best traders aren’t trading. I’m here to tell you, the best traders aren’t trading.
I want to look at MPC ( NYSE: MPC ), Marathon Petroleum. The energy stocks are working pretty well. I got into Marathon Petroleum ( NYSE: MPC ) on this breakout, and I am down 1.16 percent, so basically I am flat but I want to explain it. It would have been nice if this had run up to $80.00 and held, but it didn’t. But does that make me feel like this is a failed breakout? The answer would be no.
We’ve got heavier than average volume today. We’ve got the stock closing above where it opened. For three successive days, we have closes that are higher than the open. And we also have, over the last two days, higher intraday high and higher intraday low. And then I am looking at this as institutional buying here. And check this out, this does look like kind of a typical zigzag, a move up, and then a pullback. Then a move up and then a pullback. Now it’s looking like another move-up pullback and then we are going to wait for a pullback.
I like this stock right here. Again, the takeaway for me today is a positive close, up ¾ of a point, which isn’t a lot. But it is really the positive close combined with this green spike here of over 10 million shares. We’ve got the same thing here, we got another one here. And so the bigger spikes are all green and that is what we like to see.
I think if the stock pulls back a little bit tomorrow, this might be an opportunity, actually, to get into the stock at a little bit lower price. I like the way this pattern is setting up, I like the sector. I like everything that is going on with energy because, frankly, that’s where the money is going.
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