Monday, April 04, 2005

Brief Update

Between a sick daughter, taxes, and daylight savings time...I haven't had time to write a post this week.

Just wanted to share a few thoughts on the markets. In my previous post, I discussed my bet on oil/gas stocks being soft and going long the Dow. Funny how oil/gas stocks surged and the Dow dropped even further. But, that's what the market does...makes it tough on ya.

This week will prove to be a key week in my Dow trade. I have placed a line in the sand and if the market doesn't live up to my plan...I'll have to adjust the plan. Meaning, by my plan the Dow should begin a turn and reverse very soon. In fact, if I do not see the Dow begin an advance this week...I'll get worried. Not until then.

In fact, based on the data I'm seeing...oil/gas stocks are where my worries are. I I needed to see a continued soft spot for these stocks. The Goldman Sachs call....all that changed. I'm seeing new equity highs due to that call. Something I didn't think would come until the first quarter numbers begin to come out. If we continue to see strength in these stocks heading into earnings...the earnings announcements may prove to be an intermediate top in this sector. And I really hate to say that considering the long-term fundamentals of the sector. So, watch out...if you're not in this may pay to wait several months before stepping a toe in.

Pay attention out there. Things could get interesting.

Later Trades,


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