Yo Pit Crazies,

Traders are jumping back into stocks on a drop in oil prices. Funny enough, P/E on the Invesco QQQ Trust (QQQ) was just 17 Friday. Hardly a bubble but also a compelling valuation with Tech Earnings at an all time high.

Look below.

The first came off Sibyl, my idea-flow tool that flags when a name inside one of my themes hits a good price. I keep the themes in my head and Sibyl tells me when a stock finally deserves a trade. Most of that list still needs time, but this one’s getting close.

The second came off my bottom-of-the-basement scanner, and that’s a list no stock wants to make.

Let’s get into it…

I have some Flowers for you

While the market rebounds Monday, the stocks that the market forgot in 2026 are coming back to the fore. I expect some bounces in many stocks that Sibyl follows. One of the bigger areas is food and consumer staples. This week we have the makers of Twinkee’s and other tasty treats on tap. The important thing about going shopping is looking for bargains. For stocks I want to see a bounce and some interest come back into the name. Flowers Foods (FLO) is fitting the bill.

Right now FLO is on a long list of stocks that should recover nicely once oil prices get back to lower levels. With the Democrats in charge, government spending should jump a bit.

1-Year FLO chart

I do see some option accumulation here as the long term OI jumped 50% albeit from a lower level. As the AI outlook waxes and wanes on some of the data center initiatives, less exciting businesses should get more attention. This is the anti-AI trade.

Sibyl is 16 for 17 in closed trades so far in 2026. I will stick with her.

Somebody scared this CAT

One of the blue Sibyl turned out to be a surprise for me. The AI trade must be over because Caterpillar Inc (CAT) is near a 52 week low. As I write this it is bouncing like a rubber ball but I think the AI trade could still be in trouble due to short term news and lower valuations for the Anthropic IPO. This is what I would call a sell the bounce trade, not a long term short. I would look to acquire CAT in the low 500s when it gets that low. I think it will pull back from here.

The biggest issue with CAT is too much of a good thing. The stock was on a tear, ran $500 to $1000 and had to survive under the auspices of unreal expectations. Like many of the stocks that ran with the AI buildout, CAT got hit as the earnings did not live up to the hefty stock levels. CAT got to 3% of the 52 week low.

As anyone can see from the chart below, the CAT trade is moving in sync with the rest of the big chip stocks. CAT flew on using the energy generation provided by the big vehicles it produces. That early use case is still there, just not enough to generate a 50x P/E yet.

1-Year CAT

I expect CAT to sell off a bit here as traders separate the AI trade from tech in general. CAT has a role to play but I think it will go back just to the regular growth of making big machines. There is a kicker for the AI trade but it will take longer to play out. I think short of the bounce and cover in the $550s.

So which one does the crew pick for Monday’s Ticker Highlight Show? Tap this link to join at whatever rate you want and get Monday’s pick as soon as it hits.

Hopefully this was helpful,

Andrew Giovinazzi