New downtrend underway?
Following last week’s sell-off, the market trend picture is once again negative (or at best mixed). The likelihood of a move back down to (or potentially through) near-term support levels – i.e., about ~1340 and 1320-1330 on the S&P 500 – seems high.
New positions
Magellan Midstream Holdings, L.P. (MGG) – Last Friday I sold some July 22.5-strike puts on MGG as the stock dipped during the overall market sell-off:
The intermediate-term trend for MGG is currently mixed, however after its recent weakness it’s now becoming oversold and approaching near-term support at the 22-1/2 to 23 level. A break below 22 1/2 would suggest a move down to or below the March lows. I’m comfortable owning shares in this Master Limited Partnership if they’re put to me.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Apollo Investment Corporation (AINV), Commercial Metals Co. (CMC), General Mills (), Medical Properties Trust (MPW), Piedmont Natural Gas Co. (PNY), Republic Services (RSG), RPM International (RPM), SJW Corp. (SJW), and WGL Holdings (WGL).
“Oversold” candidates of interest this week include America Movil (AMX), Archer Daniels Midland (ADM), Buckeye Partners LP (BPL), Cincinnati Financial (CINF), Everest Re Group (RE), Hormel (HRL), Lancaster Colony (LANC), Magellan Midstream Partners LP (MMP), NuStar Energy (NS), PepsiCo (PEP), Sanofi-Aventis (SNY), Sherwin-Williams Co. (SHW), and Tesoro (TSO).
