Author: ChasW

Navellier Top 5 Stocks for July

The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.

(For this 2022 year, SOM will track the Top 5 Hi-Growth Investments.)

https://navelliergrowth.investorplace.com/

High-Growth Investments

Continental Resources, Inc.

Continental Resources, Inc. (CLR) was a new addition to the High-Growth Investments Buy List last month. If you recall, Continental Resources is one of the top 10 oil producers in the U.S. It’s headquartered in Oklahoma City, but its main operations are in the Bakken oil field in North Dakota and Montana, where it is the largest leaseholder and biggest producer.

In 2021, Continental Resources produced 329.6 million barrels of oil equivalent per day (MBoepd), which included 160.6 million barrels of oil per day and 1,014 million cubic feet of natural gas per day (MMcfpd). Continental Resources expects to achieve similar production in 2022, with crude oil production forecast to be between 195 million and 205 million barrels per day and natural gas production expected to be between 1,040 and 1,140 MMcfpd.

Thanks to the strong production outlook, analysts have increased second-quarter earnings estimates by 34% in the past three months. For the second quarter, earnings are now forecast to surge 233% year-over-year to $3.03 per share, up from $0.91 per share in the second quarter of 2021. Second-quarter revenue is expected to soar 129.5% year-over-year to $2.56 billion. CLR is a Moderately Aggressive buy below $73.

SOM Technicals:

6-25-22: Closed at 65.22. Trade pressures are down but rising. Volumes are bearish. The next target  down is 60.76.

7-2-22: Closed at 65.66. Trade pressures are down. Volumes are neutral. the next target down is 60.76.

7-9-22: Closed at 65.21. Trade pressures are up. Volumes are now neutral. The next target up is 67.67.

 

ConocoPhillips

ConocoPhillips (COP), one of our oil and natural gas plays, is taking steps to help boost natural gas production globally. The company recently revealed its plans to take a 3.1% stake in Qatar Energy’s North Field East project. TotalEnergies SE and EniSpA have also purchased 3.1% stakes in the project, with the expansion expected to boost Qatar Energy’s liquified natural gas capacity to 110 million tons each year, compared to 77 million tons previously.

ConocoPhillips is also prospering from the record oil production in the Permian Basin. The Energy Information Administration expects oil production to exceed 5.3 million barrels per day in July. At the end of 2021, ConocoPhillips completed an acquisition of 225,000 net acres in the Permian Basin, which brought its total acreage in the basin to about 1.5 million. So, you can bet that ConocoPhillips is benefiting from increased production in the region.

The analyst community anticipates the boost in production will add handsomely to the company’s top and bottom lines this year. Second-quarter earnings are now forecast to nearly triple year-over-year to $3.80 per share, up from $1.27 per share in the same quarter a year ago. Revenue is expected to jump 86% year-over-year to $18.99 billion. Analysts have also upped earnings estimates by 33.3% in the past three months, which bodes well for a quarterly earnings surprise. COP is a Conservative buy below $100.

SOM Technicals:

5-1-22: Closed at 95.52. Trade pressures are up. Volumes are bullish. The next target up is 100.57.

5-6-22: Closed at 107.69. Trade pressures are up. Volumes are bullish. The next target up is 108.75.

5-14-22: Closed at 103.78. Trade pressures are up. Volumes are neutral. The next target up is 104.

5-21-22: Closed at 105.02. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 100.93.

5-29-22: Closed at 114.85. Trade pressures are up. Volumes are bullish. The next target up is 121.40.

6-05-22: Closed at 118.12 . Trade pressures are up but turning down. Volumes are bullish. The next target up is 122.59.

6-11-22: Closed at 116.40. Trade pressures are down. Volumes are bearish. The next target down is 112.16.

6-18-22: Closed at 93.74. Trade pressures are down. Volumes are bearish. The next target down is 85.88.

6-25-22: Closed at 90.94. Trade pressures are down. Volumes are bearish. The next target down is 86.62.

7-2-22: Closed at 90.98. Trade pressures are in the neutral zone. Volumes are bullish. The next target up is 101.14.

7-9-22: Closed at 86.48. Trade pressures are down but rising. Volumes are bearish. The next target up is 95.02.

 

Devon Energy Corporation

Devon Energy Corporation (DVN) is one of the rare stocks that has claimed a spot on not only the High-Growth Investments Buy List but also the Elite Dividend Payers Buy List. The fact is the leading energy company earns a coveted AAA-rating: It earns an A-rating from Portfolio Grader and Dividend Grader, as well as an A Quantitative Grade. In other words, DVN is backed by superior fundamentals, has a history of rewarding its shareholders and benefits from persistent institutional buying pressure.

In terms of fundamentals, Devon Energy is expected to achieve second-quarter earnings of $2.29 per share and revenue of $4.65 billion. That represents 281.7% year-over-year earnings growth and 97.8% year-over-year revenue growth. The analyst community has also upped earnings estimates by 27.2% in the past three months, so a quarterly earnings surprise is likely.

Devon Energy has also paid a dividend for an impressive 117-straight quarters – and that dividend has increased by a whopping 273.5% in the past year alone. The company will pay a second-quarter dividend of $1.27 per share on June 30. All shareholders of record on June 13 will receive the dividend. The stock has an 9.3% dividend yield. DVN is a Conservative buy below $59.

SOM Technicals:

5-1-22: Closed at 58.17. Trade pressures are up. Volumes are bearish. The next target down is 55.44.

5-6-22: Closed at 69.69. Trade pressures are up. Volumes are bullish. The next target up is 70.97.

5-14-22: Closed at 68.60. Trade pressures are up. Volumes are bullish. The next target up is 69.75.

5-21-22: Closed at 68.92. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 73.18.

5-29-22: Closed at 75.85. Trade pressures are up. Volumes are Bullish. The next target up is 79.23.

6-05-22: Closed at 77.02. Trade pressures are up. But rolling over. Volumes are bullish. The next target up is 88.63.

6-11-22: Closed at 73.75. Trade pressures are down. Volumes are neutral. The next target down is 69.38.

6-18-22: Closed at 58.02. Trade pressures are down. Volumes are bearish. The next target down is 51.12.

6-25-22: Closed at 53.77. Trade pressures are down. Volumes are bearish. The next target down is 51.68.

7-2-22: Closed at 56.11. Trade pressure are in the neutral zone. Volumes are neutral. The next target down is the 200 day MA at 52.38.

7-9-22: Closed at 54.47. Trade pressures are up into the neutral one. Volumes are neutral. The next target up is 59.82.

 

Marathon Oil Corporation

Marathon Oil Corporation (MRO) is another American energy company that’s benefiting from the record production happening in the Permian Basin. The company has about 135,000 net acres in the region, and it achieved production of 20,000 barrels of oil equivalent per day (boe/d) in the first quarter. But the company doesn’t have all its eggs in one basket, as Marathon Oil also has operations in the lucrative Eagle Ford, Bakken Shale and STACK/SCOOP regions.

Overall production in the first quarter totaled 281,000 boe/d, with oil production of 158,000 barrels per day. Marathon Oil also achieved its guidance to bring between 50 and 60 wells online, with 57 coming online during the quarter. Given its production strength and better-than-expected first-quarter earnings and revenue results, the analyst community increased second-quarter earnings estimates by nearly 52% in the past three months.

Second-quarter earnings are now expected to surge 472.7% year-over-year to $1.26 per share, up from $0.22 per share in the same quarter a year ago. Second-quarter revenue is forecast to increase 81.2% year-over-year to $2.07 billion. Marathon Oil will release second-quarter results on August 3. MRO is a Moderately Aggressive buy below $24.

SOM Technicals:

3-26-22: Closed at 26.04. Trade pressures are up. Volumes are bullish. In consolidation. A close below 25.00 would signal lower.

4-2-22: Closed at 25.75. Trade pressures are up into the neutral zone, Volumes are bullish. The next target up is 26.22, the prior high.

4-10-22: Closed at 25.92. Trade pressures are up. Volumes are bullish. The next target up is 26.40 the prior high.

5-1-22: Closed at 24.92. Trade pressures are up. Volumes are neutral. The next target up is 27.27.

5-6-22: Closed at 28.15. Trade pressures are up. Volumes are bullish. The next target up is 29.00.

5-14-22: Closed at 27.00. Trade pressures are up. Volumes are bullish. The next target up is 27.35.

5-21-22: Closed at 27.26. Trade pressures are down but turning up. Volumes are bullish. The next target up is the 28.44 resistance.

5-29-22: Closed at 31.24. Trade pressures are up. Volumes are bullish. The next target up is 34.09.

6-05-22: Closed at 31.60. Trade pressures are up but rolling over. Volumes are bullish. A break below 30.58 would signal lower.

6-11-22: Closed at 30.10. Trade pressures are down. Volumes are bearish. The next target down is 27.90.

6-18-22: Closed at 24.15. Trade pressures are down. Volumes are bearish. The next target down is 20.39.

6-25-22: Closed at 22.05. Trade pressures are down. Volumes are bearish. The next target down is 20.62.

7-2-22: Closed at 22.56. Trade pressures are in the neutral zone. Volumes are neutral. The next target down is 20.90.

7-9-22: Closed at 21.72. Trade pressures are up into the neutral zone. Volumes are neutral. The next target up is 24.55.

 

Targa Resources Corporation

Targa Resources Corporation (TRGP) focuses primarily on natural gas and natural gas liquids (NGLS), with operations in the Anadarko Basin, the Bakken Shale, the Barnett Shale, Eagle Ford Shale, the Permian Basin and Three Forks. And the company aims to boost its natural gas production in the Permian Basin with its recently announced acquisition target.

Targa Resources plans to purchase Lucid Energy Group in a $3.55 billion cash deal. Lucid Energy is a natural gas company focused on gathering, treating and processing natural gas from the Permian Basin, with 1,050 miles of pipelines and the ability to process 1.4 billion cubic feet of natural gas per day. Lucid Energy also has 600,000 dedicated acres, which support more than 20 years of drilling inventory.

The acquisition is expected to be complete in the third quarter and immediately accretive to distributable cash flow per share. Company management noted that the acquisition will also support Targa Resources commitment to rewarding its shareholders with increased dividend payments, as well as stock buybacks.

Prior to the acquisition closing, Targa Resources still has superior fundamentals: The consensus estimate calls for second-quarter earnings of $0.99 per share on $5.31 billion in revenue, which represents 560% year-over-year earnings growth and 55.4% year-over-year revenue growth. Analysts have also increased earnings estimates over the past three months. TRGP is a Conservative buy below $63.

SOM Technicals:

5-29-22: Closed at 72.82. Trade pressures are up. Volumes are bullish. The next target up is 74.70.

6-05-22: Closed at 77.35. Trade pressures are up. Volumes are bullish. The next target up is the 81.50 prior high.

6-11-22: Closed at 72.43. Trade pressures are down. Volumes are bearish. The next target down is 70.00.

6-18-22: Closed at 60.65. Trade pressures are down. Volumes are bearish. The  next target down is 59.04.

6-25-22: Closed at 59.14. Trade pressures are down but rising. Volumes are bearish. The next target down is 57.39.

7-2-22: Closed at 61.00. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 65.72.

7-9-22: Closed at 59.72. Trade pressures are up into the neutral zone. Volumes are neutral. The next target up is 64.14.

 

S&P 500 Futures

#emini #spfutures #SP500 #ES

Market Pressures:

Copper is down with targets in the mid 3.60’s. Gold and silver are near long entries but need weekly confirmation.

Crude oil is retracing the move up. Natural gas is near downside target. Take profits soon in both.

The US 30 Year Treasury is setting up for a new move up.

The US Dollar futures are starting a consolidation in the 102-105 range. Trade the ranges.

______________________

S&P 500 Futures_

Monthly – In the move down from the 4545 short entry. Trade pressures are down. Volumes closed the month of May as bullish. The next target down is 3008. A close above 4275 would confirm any weekly move higher.

Weekly – In the move down from the 4498 short entry. Trade pressures are down hard. Volumes are bearish. The next target down is 3589. A close above 4275 would confirm any Daily move higher.

Daily – Short. In the move down from the 3997 short entry on June 10th. Trade pressures are down. Volumes are bearish. The next target down is 3373. A close above 3765 would signal a new move up.

____________________

Navellier Top 5 Stocks – This Top 5 model portfolio begins each year at $100,000. The Top 5 Growth stocks are tracked throughout each year. This portfolio is marked to the market and is restarted at $100,000 for the 2022 year.

The portfolio stocks closed up 39% for the 2021 Year.

This last week was down again and the value moved down sharply to approximately $70,000. The Year-to-Date portfolio performance is now down 30%.

 

[The author may have long or short positions in any of the securities mentioned.]

 

US$$

#usdollarfutures #ustreasurybondfutures

USD_ DXU22

Weekly – In the June 2021 uptrend. Trade pressures are down into the neutral zone. Volumes are bullish.

Daily – In a pull back for the 105.56 high. Trade pressures are down. Volumes are now neutral.

The next target up is 105.75.

A close below 103.75 would signal lower.

 

US 30YR T-BOND_ USU22

Weekly – In the Jan 2022 downtrend. Trade pressures are down. Volumes are bullish.

Daily – Short.  Broke down thru the 103-05 SL and set up a new short entry with the FED 75bp raise. Trade pressures are rising into the neutral zone. Volumes are still bearish.

The next target  down is 131-26.

The 10 year over 3% attracts some buying. A new long entry stop is at 135 -16.

Oil & Gas

#crudeoilfutures #naturalgasfutures

CRUDE_ CLU22

Weekly – In the Jan 2022 uptrend. Trade pressures are up but turning down. Volumes are bearish.

Daily – Short. In the new short trade from the 111.88 entry. Trade pressures are down. Volumes are bearish.

The next target down is 102.76. Take profits there.

A close above 110 would resume the move up.

 

NAT GAS_ NGN22

Weekly – In the June 2021 uptrend. Trade pressures are down into the neutral zone. Volumes are now bearish.

Daily – Short. In the move down from the 8.45 entry price on June 14th. Trade pressures are are down. Volumes are bearish.

The next target down is 6.54. Take profits there.

A close above 7.54 would signal higher.

Metals

#copperfutures #goldfutures #silverfutures

COPPER_ HGN22

Weekly – In the May 2022 downtrend. Trade pressures are up in the neutral zone. Volumes are bearish.

Daily – Flat. In the move down from the 4.356 short entry June 9th. Trade pressures are down. Volumes are bearish.

The next target down is 3.43.

A close above 4.09 would signal higher.

 

GOLD_ GCQ22

Weekly – Continues the test of the May 2021 uptrend. Trade pressures are rising into the neutral zone. Volumes are bearish.

Daily – Long. Still in the long trade. The long entry last week resulted in an immediate stop out at the 1848 SL. Trade pressures are up. Volumes are now neutral.

The next long entry is still the 1972 level, but to be conservative in this volatile market, wait for the weekly Trade pressures to confirm the daily trade.

A close below 1816 would signal a new move lower.

 

SILVER_ SIN22

Weekly – In the May 2022 downtrend. Trade pressures are down but rising. Volumes are bearish.

Daily – Flat. In the move up of the 20 42 low pivot. Trade pressures are up. Volumes are bullish.

As with gold must wait for the weekly to turn bullish. Could happen with a break above the 21.97 pivot high.

A close below 20.92 would signal lower.

S&P 500 Futures

#emini #spfutures #SP500 #ES

Market Pressures:

Copper is pulling back to the 25×5 MA. Gold and silver rallied on the inflation print.

Crude oil is at new highs. Natural gas retraced half of the drop to 8 dollars.

The US Treasury Bond is below the prior long entry, so looking for a move back up and thru.

The US Dollar futures are resuming the move up.

____________________

S&P 500 Futures_

Monthly – In the move down from the January 2022 sell off. Trade pressures are down. Volumes closed the  month of May as bullish. The next target down is 3695. A close above 4444 would confirm any weekly move higher.

Weekly – In the second leg of the move down from the 4464 short entry on April 15th. Trade pressures are down. Volumes are bearish. The next target down is 3487. A close above 4484 would confirm any daily move higher.

Daily – Failed at the upper channel line at the 4200 levels then down hard. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is the 3807 prior lows. A close above the Friday’s high of 4030 would signal higher.

____________________

Navellier Top 5 Stocks – This Top 5 model portfolio begins each year at $100,000. The Top 5 Growth stocks are tracked throughout each year. This portfolio is marked to the market and is restarted at $100,000 for the 2022 year.

The portfolio stocks closed up 39% for the 2021 Year.

This last week was down sharply and the value moved don to approximately $86,000. The Year-to-Date portfolio performance is now down 14%.

 

[The author may have long or short positions in any of the securities mentioned.]

US$$

#usdollarfutures #ustreasurybondfutures

USD_ DXU22

Weekly – In the March 2021 uptrend. Trade pressures are down into the neutral zone. Volumes are bullish.

Daily – Long in the move up from the 101.81 entry on June 3rd. Trade pressures are up. Volumes are bullish.

The next target up is the prior high at 104.85.

A close below 103.84 would signal lower.

 

US 30YR T-BOND_  USU22

Weekly – In the January 2022 downtrend. Trade pressures are down but rising. Volumes are bearish.

Daily – Long. In the move up, but waiting for a retest of the long entry. Trade pressures are down but rising. Volumes are bearish.

The next target up is the prior long entry at 136-06. Buy at that level.

A close below 135-05 would act as the SL.

Oil & Gas

#crudeoilfutures #naturalgasfutures

CRUDE_ CLU22

Weekly – in the Jan 2022 uptrend. Trade pressures are up. Volumes are bullish.

Daily – Flat. This September contract is lagging the July contract. Trade pressures are up but turning down. Volumes are bullish.

The next target up is 118.90.

A close below 111.88 would signal lower.

 

NAT GAS_ NGN22

Weekly – In the June 2021 uptrend. Trade pressures are up but showing divergence. Volumes are bullish.

Daily – Flat. The reversal of the the move down was immediate and stopped out any shorts.. Trade pressures are down but rising. Volumes are bullish.

The next target up is 9.84.

A close below 8.45 would signal lower.

Metals

#copperfutures #goldfutures #silverfutures

COPPER_ HGN22

Weekly – In the May 2022 downtrend. Trade pressures are up. Volumes are neutral.

Daily – Long in the move up from the 4.26 entry on May 19th. Trade pressures are down. Volumes are bearish.

Looking for the trade pressure reversal to re-enter the long. The next target up is 4.49.

A close below the current low would signal a new move down.

 

GOLD_ GCQ22

Weekly – Rising off the May 2021 uptrend support. Trade pressures are rising to the neutral zone. Volumes are bearish.

Daily – Long. Closed above the 1872 long entry price on Friday. Trade pressures are up. Volumes are bullish.

The next target up is 1952.

A close below 1848 would signal lower.

 

SILVER_ SIN22

Weekly –  In the May 2022 downtrend. Trade pressures are down. Volumes are bearish.

Daily – Flat. In the consolidation around the 21.93 long entry price. Trade pressures are down. Volumes are bullish.

Look for the next bullish reversal of the trade pressures.

A close below the lower median line at 21.00 would signal lower.

 

S&P 500 Futures

#emini #spfutures #SP500 #ES

Market Pressures:

Copper is consolidating after the move up. Gold and silver are back testing the old long entry levels.

Crude oil is breaking out of the upward sloping channel. Natural gas is correcting after the long move up.

The US 30 Year Treasury is ready for a new move up.

The US Dollar futures are still in a retracement down, but a break above 102.50 should start a new move up.

____________________

S&P 500 Futures_

Monthly – In the move down to the 3695 downside target. Trade pressures are down. Volumes closed the month of May as bullish. The next target down is that 3695. A close above 4444 would confirm any weekly move higher.

Weekly – In the move down from the 4464 short entry on April 15th. Trade pressures are down. Volumes are now neutral. The next target down is 3487. A close above 4482 would confirm any Daily move higher.

Daily – Broke out of the downward sloping channel but then dropped back into the same channel. Trade pressures are up but rolling over. Volumes are bullish. The next target up is the resistance at 4216. A close below 4100 would resume the move down.

____________________

Navellier Top 5 Stocks – This Top 5 model portfolio begins each year at $100,000. The Top 5 Growth stocks are tracked throughout each year. This portfolio is marked to the market and is restarted at $100,000 for the 2022 year.

The portfolio stocks closed up 39% for the 2021 Year.

This last week was also up sharply and the value moved up to approximately $92,000. The Year-to-Date portfolio performance is now down 8%.

 

[The author may have long or short positions in any of the securities mentioned.]