As we all know Buffet has a huge war chest. During the latest filings we learnt he has loaded up on healthcare names, shaved off some Apple and did some other reshuffling. He also left off reporting a position he is currently building.
The derivative of the vaccine (which he obviously believes in) is whatever benefits from the "rotation" back to normality. Exxon should screen well as a candidate.
Buffet sold his last huge stake in Exxon in late 2014, when the stock was above 90. Buffet has been one of the biggest holders of Exxon and he knows the company well. His comment post the sale of the Exxon stake in 2014 was;
"We thought we might have other uses for the money…Exxon Mobil is a wonderful company."
It would be even more wonderful if you sold it at 90+ and buy it here.
Exxon is quality, pays a "healthy" dividend yield and it does not get more American.
As we showed yesterday, Exxon has had heavy call volumes lately, making short gamma dealers chase the stock higher. If Buffet is chasing offers higher as well, Exxon could extend what we already suggested on November 6, namely that dogs can squeeze.
Watch that short term negative trend line carefully, a close above it and the squeeze continues.