Market Prep: Record Breakouts & Trade Updates
$HAL $SPX $SPY $XOM $CVX
Hi Trader,
What a record-breaking day on Wall Street! Dow Jones Industrial Average closed above 49,000 for the first time in history. Both the Dow and the S&P 500 reached new all-time highs, driven by a mix of geopolitical news and tech optimism.
The market was primarily fueled by excitement in the AI and data storage sectors; companies like SanDisk and Western Digital saw massive gains following bullish comments from Nvidia’s CEO. Additionally, investor sentiment was lifted by recent U.S. military actions in Venezuela, which sparked hope for improved global energy supply and stability. While most sectors rose, energy stocks actually dipped as oil prices cooled. XOM and CVX gave back almost all Monday’s move and it’s crucial that they remain above the breakout levels. (See our Sunday’s post). If not, it’s a bad sign and one should rather stay away.
We’ve upcoming labor market reports due later this week. So that will be the focus for now.
Venezuela stock market was on fire and as of today, the IBC Index has surged more than 100% Year-to-Date (YTD).
Now, let’s look at our trades—some we’ve already executed, others we’re considering for the next few weeks/months but haven’t entered yet—as well as updated SPX/SPY levels after today’s breakout.
A trade idea we spoke about on Sunday, RKLB 0.00%↑ had insane day. We took the breakout play at 76.25, and we were up almost 13% in a day so we closed 50% of the trade close to $86. We have 50% of the shares left with stop at $80.
Setups posted on Sunday (see screenshot below).
DAL 0.00%↑ UAL 0.00%↑ also had a good day, we will be closely watching Delta Airlines, because the breakout wasn’t strong enough and another attempt to cross $73 could play out well.
As mentioned above, some oil companies retested all Monday’s move. This level of previous entry on CVX must hold. Same on XOM, $120 must hold. (Please review Sunday’s charts).
HAL 0.00%↑ is now in a good buying spot on a demand zone, with an entry around $30.66 and a stop loss below the previous low at $28.92. Targets are $35+.
HAL is a great name to hold long-term and is less volatile than some other oil infrastructure plays like NBR 0.00%↑ .
NBR just broke above a strong supply zone and is moving higher.
So what’s the difference between HAL and NBR?
Halliburton, (HAL) is one of the largest diversified oilfield service providers, offering a broad range of services including completion, production, and digital solutions across the well lifecycle.
Nabors Industries (NBR), on the other hand, primarily focuses on land-based and offshore drilling rig operations, which ties its performance more directly to rig counts and drilling activity, leading to greater price swings and higher volatility compared to HAL’s more stable, service-oriented business model. NBR is a high-risk/high-reward play—one must have stomach owning such name. You choose your horse.
NBR trade: Entry $61, suggested stop at $51. Target $80+.
Silver
Silver may experience heightened volatility over the next two weeks due to the upcoming rebalancing. You can read our quick post regarding the current contract rolling here. We will provide a deeper dive into silver miners and other commodities in our weekly report this Thursday. Just want to make sure you’re aware of this.
There is no need to panic; we believe this rebalancing is mostly noise and remain confident that silver can go much higher. However, do be prepared for some short-term volatility across the commodities market.
If we see some nice dips in SLV, and silver miners SILJ 0.00%↑ and SIL 0.00%↑ we will be adding to our portfolio. We’ll keep you posted!
What’s next for the overall market?
