Last week the stock market faced a pullback. However, the four major indices closed above Thursday’s high on Friday ending the week on a positive note.
With each stock market index potentially poised to run towards highs, we should prepare our watchlist with stock picks from the top-performing sectors.
Looking at the top 3 performing sectors over the past 3 months we have Oil & Gas Exploration (XOP) up +29%, Solar (TAN) +15%, and Semiconductors (SMH) +14%.
If the market is looking to push higher next week, we should keep these top sectors in mind as equities within these areas will have a much greater chance of making huge gains.
Starting with oil & gas exploration, Callon Petroleum (CPE) is holding above its 10-Day moving average and support from the $60.50 area.
Additionally, CPE has made positive earnings growth for the past 5 quarters and looks ready to clear recent highs if the market permits.
For the solar space, Enphase Energy (ENPH) is a top-performing solar stock sitting near highs.
Though its high price makes it tough to find a perfect risk level, it’s worth watching ENPH for an entry point since it’s a major leader in the solar sector.
When it comes to semiconductors and the tech space, Nvidia (NVDA) has held over its 10-Day moving average and has consolidated underneath $308.50.
Timing NVDA with a mover higher in the Nasdaq 100 (QQQ) is key for this mega-cap stock.
Additionally, if NVDA can clear the $308.50 price level it could be ready to make another quick move past highs.
Nonetheless, these are three great picks to add to the watchlist, however, keep an eye on the major indices to hold and move higher.
If Monday does not follow through, stay cautious as bulls could easily be trapped as many loaded up on equities Friday anticipating a move to highs.
If this is the case, sit on the sidelines and keep these stocks in your watchlist for when the time is right!
With the climate accord being the hottest topic of the year, Mish covers ETF’s and stocks for your portfolio as clean energy will be a continuing trend in 2022.
Stock Market ETFs Trading Analysis & Summary:
S&P 500 (SPY) 467.38 support.
Russell 2000 (IWM) 236.31 new support.
Dow (DIA) 359.48 support.
Nasdaq (QQQ) 387.53 support.
KRE (Regional Banks) 72.90 support area.
SMH (Semiconductors) 291.55 support.
IYT (Transportation) 275.11 minor support.
IBB (Biotechnology) Needs to stay over 153.38.
XRT (Retail) 99.80 support.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
