Republic Risk: Energy Is Positive, Buffett is Buying Big on Occidental

As I noted yesterday, there's a special trade that I've been revisiting time and time again in 2023. Let's take another look.

Equity Index Strength Is GREEN on the S&P 500 and GREEN on the Russell 2000

Each morning, we assess the full flows of the market by measuring statistical metrics on a very specific number of stocks to determine broader sentiment and the momentum trend. When these readings turn red, we focus on cash, build trades around positive sectors, or take inverse positions against indices. When it is positive, we focus on short-squeeze stocks, companies with improving fundamentals, and trading/investing around the actions of corporate insiders.

We’re back in positive territory in all sectors, and energy is now positive again with strong RSI, MFI, and MACD readings. Today, I want to reiterate an opportunity around Occidental Petroleum (OXY). The markets have been positive for seven weeks, and today is Quad Witching. We will want to be cautious heading into next week, given that profit-taking and tax harvesting are on the horizon. But we remain in a very positive technical environment driven by soli…