US Stocks Face Seasonal Headwinds: How to Navigate? Oppenheimer Identifies Key Support Levels and Top 10 "Select Stocks"

The Cailian News APP has learned that Oppenheimer analysts stated in their latest report that they remain cautiously optimistic but selectively choose stocks in the current market. The firm pointed out that the four-year bull market that began in 2022 has exceeded historical averages in both gains and duration.

The analysts also cited historical data indicating that midterm election years from May to September tend to perform poorly, bringing seasonal headwinds to the market. Despite mixed bullish and bearish factors, Oppenheimer still considers the overall trend slightly positive.

From a technical perspective, the S&P 500 has fallen about 5% from its January high and is approaching a key support level at 6,600 points—coinciding with the 200-day moving average. Notably, last Monday’s intraday low of 6,636 points was accompanied by a surge in the VIX fear index to 35. The firm is closely watching whether the index will test this level again or further decline to the 6,490–6,520 range.

Tactically, Oppenheimer is monitoring changes in the VIX to assess whether selling pressure is easing—an indicator of a potential technical rebound. The analysts are especially focused on the appearance of bullish divergence: when the index tests or hits new lows while the VIX shows relatively mild readings, often signaling a trend reversal.

However, Oppenheimer also cautiously reminds that “considering the maturing phase of this bull cycle and upcoming seasonal headwinds, we will continue to adopt a selective holding strategy.”

Below are Oppenheimer’s top buy and sell picks for various U.S. stock sectors:

Energy Sector: Buy Valero Energy (VLO.US), Sell Enerflex (EFXT.US)

Materials Sector: Buy Agnico Eagle Mines (AEM.US), Sell PPG Industries (PPG.US)

Industrials Sector: Buy Johnson Controls (JCI.US), Sell Otis (OTIS.US)

Consumer Staples Sector: Buy Costco (COST.US), Sell Mondelez (MDLZ.US)

Healthcare Sector: Buy Gilead Sciences (GILD.US), Sell Cigna (CI.US)

Financial Sector: Buy Citigroup (C.US), Sell Aon (AON.US)

Real Estate Investment Trusts: Buy Digital Realty Trust (DLR.US), Sell SBA Communications (SBAC.US)

Technology Sector: Buy Applied Materials (AMAT.US), Sell FICO (FICO.US)

Communication Services Sector: Buy Google (GOOG.US), Sell Disney (DIS.US)

Utilities Sector: Buy Entergy (ETR.US), Sell Constellation Energy (CEG.US)