Oil has absolutely no support below $56. This week will be a critical test for the sector although I really don’t see how it can drop that far, multiple chart views look very dicey for the commodity.
$60 has begun to form a strong ceiling. The 50 dma is about to cross over the 200 dma which may signal a turn back up for the short term at least so don’t short oil this week but, if it does head down – look out!
In a logical world, oil should at least retest low $50s before heading higher but logic and oil are like oil and water…
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As long as the Dow remains over 10,800 all is well on that index.
The S&P held my 1,263 last week but looks shakey today.
Nasdaq has been very week and may lead the markets down.
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Barron’s agrees with me and says COP may be the best value in the energy sector! I’m usually only 2 weeks ahead of these guys but this time I have them by a couple of months…
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PCYC is a great example of how biotech can wipe out your porfolio! RBC gave them an outperform at $7 on Oct 30th after Q1 showed BTE results. The stock ran up to $9 this month but one bad study has cost 60% of its value this morning.
TNOX, on the other hand, seems to have a potential HIV vaccine but is getting a pretty ho hum response.
Biotech is one of the only sectors where I favor a fund, you really need to spread the risk over a wide range.
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Does everyone read this column? CNBC has just started upping its coverage of Europe and Asia, I suppose in response to my always pointing out how people should check the world indexes as well as the US.
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Bush is continuing his, “I’m sorry” tour with another speech today. I think this is a smart tactic but it will pin them into having to do something about it because, if it’s all talk, it will backfire.
Bush always trashes the markets so don’t buy anything today, including the Trade of the Day unless all 4 major indexes are positive. Keep a tight 10% stop just in case…
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We need to wait for the builder’s confidence numbers before going back into housing. If they are low, wait a few days. If they are high, buy right away.
FRK, VMC & CXwill be affected by this report as well.
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Google is looking way overbought and will have a lot of trouble with $340 despite Friday’s performance.
I still like HET this week, they are re-opening the New Orleans casino in February.
If money is going into big pharma, it will have to come from some other health related stocks as health funds will be moving a lot of money around today so be careful in biotech and health management, especially if they made a lot of money this year.
I think I have said this before but PALM is the best way to play RIMM. For some reason idiots keep buying RIMM’s stock so shorting it is too dicey but PALM will win as long as there is a scandal.
TSO should keep outperforming due to fund balancing as it is lagging VLO and other refiners this year.
Be careful trading out there today!
