Looking for gasoline to hit that $3.25 level, do not know what crude price that translates into since the crack spread ( how many gallons of gasoline per barrel of oil) is pretty screwed up these days. But let's say I would not be surprised to see double digit crude come October. This should keep a bullish wind behind the market, as long as a major financial institution does not fail this summer.
This rally is "the end of the world is not tomorrow, so I need to own stocks." probably looking like 1250 to 1325 SPX as a good trading range for a couple of weeks.
Hey, the Mets are now tied for 1st, good luck to the boys of summer!
Thursday, July 24, 2008
Wednesday, July 16, 2008
Where have you gone Joe Dimaggio?
So its been about 8 weeks since I posted anything. Let's recap what has happened in the markets:
1. Banks are struggling to stay solvent.
2. Home sales keep dropping.
3. Non-financial earnings holding steady.
4. Commodity prices soaring.
Gee, same news from last year, but what's different? Perception. Last year we saw this as a short term blip. Now, all the pundits are calling for a "New Deal" type of legislation to shore up the system. If you let the free market react, we will wipe out the non-performers, while letiing the stronger players survive. This happens every decade and will continue in the future.
Still bullish, see new highs by end of year.
1. Banks are struggling to stay solvent.
2. Home sales keep dropping.
3. Non-financial earnings holding steady.
4. Commodity prices soaring.
Gee, same news from last year, but what's different? Perception. Last year we saw this as a short term blip. Now, all the pundits are calling for a "New Deal" type of legislation to shore up the system. If you let the free market react, we will wipe out the non-performers, while letiing the stronger players survive. This happens every decade and will continue in the future.
Still bullish, see new highs by end of year.
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