Unless you live under a rock, then you know there’s a major war going on right now in Eastern Europe…
The war is threatening to wreck entire industries and global supply chains from EVs to chemicals for nutrients and grains like wheat, even oil... I mean, a lot of materials are needed right now since the war is going down in a place that provides these things to much of the world.
Heck, 30% of the world’s wheat comes from Ukraine and Russia, so it’s no drop in the bucket.
If you look at the XLB, an ETF that tracks basic materials companies, it’s starting to break out because of what’s happening!
When I look at all of the constituents, I see that about a third of the stocks in XLB are hot and trading near 52-week highs while the rest aren’t doing anything.
That’s because some materials stocks haven’t been impacted by the Russia-Ukraine war while others have…
So what I did is comb through the entire Basic Materials sector to pinpoint the stocks moving the needle, for lack of a better phrase. This way, you’ll be able to tell which industries are impacted by the war the most — telling you which stocks to focus on.
News broke last week that Warren Buffett’s Berkshire Hathaway sank a cool $4.2 billion into about 121 million shares of tech hardware company HP… a boring stock for the most part.
And wouldn’t you know, a big trader bought a boatload of the monthly April $40 strike calls, spending over $600,000 on 6,000 contracts back on March 29. That’s an unusual bet for this stock, or “unusual options activity,” as I like to say…
The stock then had about a 15% drop, sinking the calls to just 2 cents a contract.
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Consolidation is a technical analysis term referring to security prices oscillating within a corridor and is generally interpreted as market indecisiveness. Said another way, consolidation is used in technical analysis to describe the movement of a stock's price within a well-defined pattern of trading levels. Consolidation is generally regarded as a period of indecision, which ends when the price of the asset moves above or below the prices in the trading pattern.
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