Marathon Petroleum (MPC-N)

When OPEC raises oil prices, it will hurt MPC's margin, but this is a cheap stock that's well run.

Sells at 5x earnings and Goldman recommended it today.

From a PE valuation standpoint, refiners tend to work together. You see spreads widen or narrow off the raw product of oil, into the different commercial products. This company has been a good performer over the years. Not having great visibility into the cycle and to the spreads, he would probably pass on making this a core holding.

He sees resistance around $51. The chart shows a double top in 2015. This is a good indicator that the 2^nd time the bulls tried to do it, they got exhausted. Currently the chart is showing a nice upward trend. He likes energy. If this breaks above $51, he would be keen to add.

You can expect resistance on this at around $42. It is now at $38, so it is reaching a Sell target zone. If there is any further rally, he would Sell.

With refiners, from late summer to end of Sept, this sector goes through a process. They shut down refineries and move into producing heating oil. Mid July until end of Sept is seasonal strength. Watch inventories of gas and heating oil.