$Exxon Mobil(XOM)$ $Chevron(CVX)$ $Energy Select Sector SPDR Fund(XLE)$ $WTI Crude Oil - main 2411(CLmain)$
🔺🅱🆄🅻🅻🅸🆂🅷🔺
🚨‼️🚨 Buffett’s Red Alert: Is the Market Too Frothy? 🚨‼️🚨
Kia ora Tiger traders!
Get your ☕️ coffee cups ready because Warren Buffett’s flashing red lights are brighter than a Tui bird’s song at dawn! ☕🛑 The Oracle of Omaha has sold $97 billion worth of stocks and stashed nearly half of Berkshire Hathaway’s wealth in ultra-safe Treasury bills. What’s the big deal? The Buffett Indicator is sitting at 198.3%, and that’s about as bloated as your cousin after a second helping of pavlova. 😅📊 Add in the new twist, a modified version that factors in Federal Reserve assets at 159.4%, and it’s clear we’re in overvaluation central. The projected returns are as flat as yesterday’s soda: 0.1% to 0.4% annually, even with dividends. 🥤📉
🔍 A Walk Down Memory Lane ✒️:
Back in the late ’60s, the market was as overcooked as a burnt sausage at a Kiwi summer BBQ. Buffett’s Indicator wasn’t around then, but if it had been, it would’ve lit up like a Christmas tree. 🎄 The 1968 crash was a shocker, and the market didn’t recover for a decade. Buffett’s timeless wisdom? “Be fearful when others are greedy and greedy when others are fearful.” Is history about to repeat itself?
👀⏰‼️I’ve got my sights locked on the 🗓️ 10th of October for a market dip 📉, but it might sneak in sooner or stretch out to October 14. The tension in the Middle East is climbing faster than my coffee consumption on a Monday! ☕💣 With Israel and Iran on edge, oil prices have surged nearly 10% this week. Add rising inflation, soaring bond yields, and volatile markets to the mix, and you’ve got a financial cocktail spicier than your nan’s chilli sauce. 🌶️🔥 While I’m eyeing the 10th, things could go downhill faster than a kiwi on a luge if geopolitical tensions worsen. Hold on tight—it’s going to get bumpy! 🌍⚠️📉
Oil Prices Spiking on Geopolitical Jitters 🛢️🔥
As if things couldn’t get wilder, oil prices are skyrocketing thanks to tensions between Israel and Iran. West Texas Intermediate (WTI) crude oil has shot up nearly 10% in just one week, now trading at $72.92 per barrel. The uncertainty has traders jittery, and rising oil costs could add fuel to inflation’s fire. This could burn corporate earnings and lead to more market volatility. 🔥📉
Top Oil Stocks Taking the Lead:
• Exxon Mobil (XOM): Up 9.3% in the last 5 days and 18.7% for the year, Exxon is the Goliath of oil stocks. With net income at $9.2 billion and record production, Exxon beat its earnings target like a cricket ball smashed for six. 🏏💥 EPS came in at $2.14, better than the expected $2.01.
• Chevron (CVX): Chevron isn’t lagging behind, up 7.5% over 5 days. However, it’s a slow burn for the year with just 0.98% gains. Lower refining margins meant earnings came in a bit soft, but Chevron still brought in $51.18 billion in revenue.
XLE - The Energy ETF That Does the Heavy Lifting:
For those who prefer to hedge their bets, XLE is an ETF that gives you exposure to the energy sector without having to pick individual stocks. It’s loaded with Exxon Mobil and Chevron, making up 38% of its holdings, and the top 10 stocks account for 75%. With a deliciously low expense ratio of 0.09% and a juicy 3.49% dividend yield (paid every 3 months), it’s the perfect way to capture energy sector gains without too much hassle. XLE is up 6% in the last 5 days and 7% year to date, with a forecasted target price of $105.68, meaning a potential 16% upside. 🍻📊For more info check out @koolgal's post on this excellent ETF 📈
Hey Tiger Traders, with oil prices climbing like a cat up a tree 🐱🌳 and Buffett hedging his bets with Treasury bills, is it time to take a defensive stance too? Or is this just another bump in the road?
@TigerGPTWhat’s the game plan for investors facing rising oil prices and Buffett’s retreat to safer assets? How should traders position their portfolios in such volatile times?
Happy trading ahead. Cheers, BC 🍀
@Tiger_comments @Daily_Discussion @TigerPicks @TigerPM @TigerStars @TigerWire
Comments
Please find the analysis of the requested stocks below:
Energy Select Sector SPDR Fund (XLE):
Business and Industry: XLE is an ETF that gives exposure to the energy sector without the need to pick individual stocks. It holds Exxon Mobil and Chevron as its top holdings, comprising 38% of its portfolio. The energy sector is influenced by factors such as oil prices, demand-supply dynamics, and government regulations.
Earnings and Forecast: There is no available earnings data for XLE at the moment.
Recent Trends: XLE has shown a 6% increase in the last 5 days and a 7% increase year-to-date. It has a support price of $88.82 and a resistance price of $93.22.
Analyst Viewpoints: No specific analyst viewpoints or target price information are available.
Recent News: No specific news related to XLE in the given timeframe.
Exxon Mobil (XOM):
Business and Industry: Exxon Mobil is a multinational oil and gas company engaged in various aspects of the energy industry, including exploration, production, refining, and marketing of petroleum products.
Earnings and Forecast: According to the earnings forecast, Exxon Mobil is expected to have an EPS of $8.20 for FY2024. The forecasted gross income is $348.61 billion, and the forecasted EBIT is $46.54 billion.
Recent Trends: XOM has a support price of $115.27 and a resistance price of $124.87. The stock is currently priced at $124.83.
Analyst Viewpoints: Analysts recommend buying XOM, and the target price estimates range from $110.0 to $149.0.
Recent News: No specific news related to XOM in the given timeframe.
Chevron (CVX):
Business and Industry: Chevron is a global energy company involved in various aspects of the oil and gas industry, including exploration, production, refining, and marketing.
Earnings and Forecast: According to the earnings forecast, Chevron is expected to have an EPS of $10.92 for FY2024. The forecasted gross income is $197.99 billion, and the forecasted EBIT is $28.47 billion.
Recent Trends: CVX has a support price of $144.57 and a resistance price of $156.47. The stock is currently priced at $150.74.
Analyst Viewpoints: Analysts recommend buying CVX, and the target price estimates range from $145.0 to $189.0.
Recent News: No specific news related to CVX in the given timeframe.
Please note that the above analysis is based on the available information and should not be considered as investment advice. It is essential to conduct further research and analysis before making any investment decisions. Remember that the stock market is inherently risky, and stock prices can fluctuate significantly.
Sources:
Data retrieved from the current stock market.
Analyst recommendations and target price estimates are based on available data.
No specific news was found for the given timeframe.
*Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. It is crucial to conduct your own analysis and exercise caution when making investment decisions. Investing in stocks involves risks, and past performance is not indicative of future results.
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