Last week closed with the S&P 500 failing to break out above the upper trend line or 608, showing weakness. These levels now serve as the two key resistance areas to watch into the end of the year.
My X feed is full of posts outlining the weak fundamentals in the market right now:
- Revisions to job numbers
- Widening market breadth
- Extreme P/E ratios
As a contrarian, I’d prefer to see less bearish sentiment, but it might just be the algorithm zeroing in on me. I’ve also noticed the usual hype around Bitcoin and Nvidia, so we’ll see how it plays out heading into year-end.
Rather than trying to predict whether the market will keep melting up or drop, let’s review the stocks I’m building positions in for 2025.
Intel (INTC)
Intel is struggling to hold the $20 support zone. If it doesn’t reclaim $24 soon, more downside seems likely.
Reports suggest Intel may spin off its manufacturing division in the future, but neither Co-CEO has confirmed their plans. Personally, I see Intel’s strength in its manufacturing capabilities, so I view this as positive news. However, the impact on the stock price and share structure remains uncertain.
Intel also continues searching for a permanent CEO, which likely limits investor confidence in the short term.
Advanced Micro Devices (AMD)
I haven’t started accumulating AMD shares yet, but the current stock price has caught my attention.
AMD gained some traction from the AI buzz surrounding Nvidia in 2023 but lost favor earlier this year. Trading near $125, AMD has retested a key breakout level from December 2023 — something Nvidia hasn’t done yet. If selling slows in the next month, I may start building a position as close to $125 as possible.
That said, I need to dig deeper into AMD’s fundamentals and evaluate how it plans to position itself as a competitor in the AI space. In my recent article on Warren Buffett’s investing psychology, I emphasized the importance of understanding a business instead of just buying a stock because it looks cheap.
Occidental Petroleum (OXY)
OXY continues trading near support with little indication of a bounce. If selling persists, the next support level could be around $42.
Despite OXY’s struggles, crude futures remain strong. Since OXY’s performance ties closely to oil prices, a rebound in crude could strengthen the stock. For now, I’m staying patient.
Boeing (BA)
Boeing has been one of my best investments this year, rising 22% since my mid-November entry. However, the daily Money Flow Index (MFI) indicates overbought conditions, and the stock is approaching a gap fill from late August.
To free up cash for other opportunities, I began selling my position last week and plan to exit completely by tomorrow. Boeing’s long-term prospects still look solid, but I’m taking profits after this strong rally.