Oil prices dropped sharply last week and appears to have made at least a short-term price top. Longer term, the world does have a supply/demand problem, but for now its looks as if oil is ready to retreat and regroup. Today, oil prices fell $1.51 to $50.35 a barrel on the New York Mercantile Exchange.
This adds to or opinion that a drop in oil prices will trigger the next major rally in the market averages. Let me emphasis that I believe the drop in oil is temporary, and I will be a buyer of the major integrated and production oil companies when oil hits around the $45-$48 mark.
Today, the market fell 104.04 points after a disappointing March retail sales report. The market retreated when the Commerce Department reported that U.S. retail sales rose 0.3% percent in March, and Harley-Davidson (HDI)annouced are rare profit warning .
On the shady side of things former American International Group (AIG)chairman Hank (ie)Pankie Greenberg transferred a gift of 41.4 million shares of AIG stock to his wife a few days before he resign from the board. Oh, how convenient. Will this filth ever end? AIG will be fine, but the Greenberg boys, if guilty, should rot in prison.
