Wednesday, May 25, 2005

Stocks Falling Mid-day on Light Volume as Energy Prices Rise

Indices
S&P 500 1,186.62 -.62%
DJIA 10,432.40 -.67%
NASDAQ 2,043.25 -.90%
Russell 2000 606.38 -1.07%
DJ Wilshire 5000 11,701.55 -.67%
S&P Barra Growth 574.57 -.63%
S&P Barra Value 607.78 -.58%
Morgan Stanley Consumer 589.17 -.23%
Morgan Stanley Cyclical 717.45 -.96%
Morgan Stanley Technology 474.95 -1.10%
Transports 3,594.06 -1.07%
Utilities 361.79 -.47%
Put/Call .84 +13.51%
NYSE Arms .98 -2.04%
Volatility(VIX) 13.00 +2.44%
ISE Sentiment 158.00 +3.95%
US Dollar 86.32 -.06%
CRB 299.25 +.85%

Futures Spot Prices
Crude Oil 51.35 +3.48%
Unleaded Gasoline 146.20 +2.47%
Natural Gas 6.33 -.30%
Heating Oil 143.50 +3.45%
Gold 418.60 +.22%
Base Metals 121.84 +.22%
Copper 141.80 +.93%
10-year US Treasury Yield 4.05% +.57%

Leading Sectors
Oil Tankers +2.36%
Oil Service +1.48%
Energy +1.05%

Lagging Sectors
Hospitals -1.37%
Semis -1.72%
Steel -3.02%
BOTTOM LINE: The Portfolio is lower mid-day on losses in my Internet, Wireless and Homebuilding longs and Oil Tanker shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is negative as the advance/decline line is weak, almost every sector is lower and volume is very light. Measures of investor anxiety are mixed. Today’s overall market action is mildly negative, given last week’s gains, rising energy prices, disappointing Fed comments and the light-volume nature of today’s decline. Oil gains will likely prove fleeting as prices drop next week after the Memorial Day weekend. I expect US stocks to rise modestly into the close on short-covering and a decline in energy prices from session highs.

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