These 4 stocks showed strength on a day when most other stocks showed weakness. While stock markets crashed to lower levels than all of 2022 so far, these found buying strength and closed positive. Whether they can continue to lead upward is another question.

First, here’s how extreme things got on Friday. Put buyers (bets on further down) outnumbered call buyers (bets on back up) at a rate not seen since the March, 2020 pandemic lows. The CBOE equity put/call ratio is so high that it may signal selling exhaustion. Emphasis on the “may.”

Here’s how it looked:

This is the kind of extreme reading seen when markets are tending to lean too far in one direction.

Here are 4 stocks that found buyers in the midst of the tremendous selling pressure:

Domino’s Pizza Group (NYSE: DPZ) closed up by 3.08% .

Just as the price reached the mid-May lows, the buying came back in. This isn’t always the case with other stocks which have hit earlier-in-the-year lows. For some reason, Domino’s Pizza stock looked good to buyers — check out the heavy positive-leaning volume.

Home Depot Inc (NYSE: HD) gained .67% on Friday.

The selling took the stock back to the June lows and that’s where the buyer stepped in again — similar to the Domino’s Pizza action. It’s impossible to say if the buying will continue, of course. All that’s notable here is that the price managed its way to positive ground while almost all other stocks closed negative.

Johnson & Johnson
JNJ
(NYSE: JNJ) ended up by .32%.

This one is not all that surprising as the name tends to be a favorite for those mutual funds and ETF’s who are required to own a certain percentage of stocks no matter what. In that sense, the drug manufacturer is equivalent to cash for some. Note that the price closed well above the late February low.

Sherwin Williams (NYSE: SHW) gained 1.52%.

The stock had already dropped below its earlier 2022 low in June and has yet to rise above that low. Nonetheless, a close of up by 1.52% is a sign that some buyers are ready to get back in. The specialty chemicals company was downgraded in June by Bank of America
BAC
Securities from a “buy” to “neutral.”

There are a few other recognizable names that ended the day positive, but these 4 tend to give a good picture of the pockets of resiliency underneath the stock market’s big pull downward. If that put/call ratio is a decent measure of “extreme,” then the buying here may begin to make sense later.

Not investment advice. For educational purposes only.

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