- As Goldman Sachs’ stock turned from red to green on Friday the DOW added another 125 points. The Financial stocks were the last major group to rise and were required for the first-of-the-year blow out.
- In five trading sessions the Dow has advanced more than 500 points to 9034. The S&P, at 931, is blasting closer to a target of 1000.
- But we are due for a rest. Many are suggesting the market is short-term overbought and some see sell signals.
- I feel we have more upside but would agree the averages are ahead of themselves
- Buying the dips may be back in favor.
- Oil prices will be watched carefully on Monday to determine if last week’s rise was simply the result of too little volume. Or if the cause was Russia’s stingy ways with nat gas which potentially exposes Eastern Europe to supply disruptions. Should we have a land war in Gaza look for oil to spike. I am long both SSL (South Africa) and PBR (Brazil). Am looking at Hess (HES). Shares traded as high as $137 when oil was priced the same. Now at $57 it trades at 6x this and 15x next year’s estimates.
- Copper stocks are on a tear. In a week, PCU is up 25% while FCX up a little less. Wanted to add to my FCX convert preferred but chickened out since it was already up 7% yesterday.
- BTW, both Hess and Exxon offer attractive loyalty credit cards. No annual fees and either cents off or percentage off each gallon.
- Here is Hess application: Gas Card Application.
- And here is Exxon/Mobil’s: Apply
Disclosure: own PBR, SSL, PCU, FCXprM
