Fill ‘er Up
The Dow finished the week up 209 points while the Nasdaq NDX slipped 3 points. Action for the week was plus 769. The market was making good headway until oil hit $75 midday Friday.
Earnings mean more than the price of oil. We will know in the next few weeks what the cost of oil means to each industry. We will also know how much the high price of oil dampens the need to raise interest rates.
Rydex funds- More than market exposure in the double Bullish NDX fund. Looking to take profits or add to the position based on Monday’s action.
Short term - Getting overbought
Fridays pullback was healthy
INTERMEDIATE TERM TRENDS
NDX UP, SPX & Dow - FLAT
INTERMEDIATE OSCILLATOR
Neutral
Oil XOI- Number one this week led by our Occidental Petroleum OXY holding which is up 20%.
Financials BKX and KIX-Catching up to Broker Dealer which is still in the top ten ranking. Good earnings and a steeper interest rate curve helps these sectors.
Transportation IYT-Still in the top ten ranking despite the spike in oil prices. A sign the economy may be strong enough to absorb the shock.
Disk Drive DDX- Took a nose-dive as Hutchinson HTCH and Sandisk SNDK tanked on Friday.
Insurance KIX- Nice gains as Timken TMK, Progressive PGR and Marsh McClellan MMC find some buying.
Airlines XAL- Crash landing with Oil on top. Look for these stocks to find support this week.
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