So much for the whole “sell in May and go away” concept, huh? I didn’t buy into that concept, and it’s a good thing; overall the S&P 500 was up another 1.5% this week. In light of the cyclical rotation underway, one of the sectors I’m shifting my focus to is energy.
Exxon Mobil (NYSE:XOM) stock was down most of the day Friday in sync with crude oil as bulls and bears battled at longtime resistance. Fellow big oil companies ConocoPhillips (NYSE:COP) and Chevron (NYSE:CVX) both were slammed back from similar resistance earlier in the month and then plunged through. I expect the same to happen with Exxon.
Recommendation: XOM June $90 calls for a $2.40 target. There’s a lot of time left for this to play out.
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