Monday, January 29, 2007

Stocks Slightly Higher into Final Hour on Another Decline in Energy Prices

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Retail longs, Medical longs and Commodity shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly positive as the advance/decline line is modestly higher, sector performance is mixed and volume is about average. Over the weekend, the Financial Times reported that an overwhelming majority of citizens in the European Union believe the euro has damaged their economies. Global economic growth has boomed over the last few years and many Europeans are already this pessimistic on the euro's effects on their economies. I suspect during the next significant global economic downturn we will see a serious push in some prominent countries to leave the EU all together. I expect US stocks to trade mixed-to-higher into the close from current levels on falling energy prices and stable long-term rates.

No comments: