Josh Brown Buys Exxon Mobil: A Trade Alert and Commodity Outlook

Josh Brown's Exxon Mobil Trade

• 💡 Josh Brown has initiated a long-term position in Exxon Mobil (XOM), viewing it as a breakout stock.
• 🎯 He previously wrote about XOM as the 'best stock in the market' and sees the current price level as an opportune time to buy.
• 📈 The stock is challenging the $120 overhead resistance, with Brown believing sellers have been cleared out.
• ⚠️ While a personal trade, he notes it's not a huge or forever position, but one he expects to work.

Rivian's Autonomous Vehicle Developments

• 🚗 Rivian is designing its own chip for autonomous driving, incorporating artificial intelligence.
• 📅 This new AV system, called Rivian Autonomy Plus, will be integrated into R2 models launching late next year.
• 💰 The system will be available for $2,500 upfront or $49.99 per month.
• 🔄 Previously, Rivian used Nvidia chips, but has now shifted to in-house chip design.

Commodity Market Outlook

• 📊 Jeffrey Gunlock notes a quiet rally in commodities, with the Bloomberg Commodity Index rising and its 200-day moving average also increasing.
• 🔑 Gunlock turned positive on commodities broadly last week, suggesting a commodity index makes sense.
• 📈 Gold has been a leading indicator, followed by silver, and copper is expected to move next.
• 🛢️ Crude oil in the mid-$50s is seen as a great buying spot, with commodities being a crucial part of diversified portfolios.

Commodities as a Portfolio Hedge

• 🛡️ Commodities are presented as the only hedge for equity investors against commodity price spikes that could negatively impact portfolios and economic data.
• 🧩 Exxon Mobil is highlighted as an 'avatar' for this theme, offering a more concentrated way to capitalize on energy sector strength compared to ETFs.
• ✈️ A meaningful bounce in crude oil could negatively impact airline stocks, making energy exposure a hedge against this risk.
• 💰 Midstream energy companies are also mentioned as a way to create cash flow.

Exxon Mobil's Diversification Advantage

• 🌟 Exxon Mobil is favored within the energy sector due to its diversification across crude oil, natural gas, refining, and marketing.
• 📈 Despite crude oil being down 5% this week, XOM is showing strength, unlike other refiners, due to its robust internal performance.
• ⛽ Natural gas prices are above $4, a significant increase from previous lows, adding to XOM's appeal.