Almost on cue, Fed Chairman Alan Greenspan said there appears to be "a little froth" in the U.S. housing market. As I had mentioned a few days ago, I felt that Greenspan would try to cool the red hot housing market with words, rather than over tightening. Of course, if "words" do not do the trick, Greenspan will possibily over tighten, and drive the US economy into a recession. Make no mistake, the speculation taking place in real estate today is a very serious problem. Homebuilding stocks sunk after "Uncle Alan" made his comments.

Crude oil fell 12 cents to close at $46.80 per barrel in New York. I thinks you will see oil prices bottom out around $42/bbl before begin its next upward trend. There continues to be rumblings at OPEC about possibily cutting production in June. In addition, Comments by Saudi Oil Minister suggest that oil prices will remain higher for a longer in 2005-2006. I wouldn't put it past OPEC to begin announcing that $40/bbl oil is now OPEC's new target price.

For this reason, I believe we should not attempt to wait for the bottom in oil to begin buying. On Thursday, oil stocks headed higher even as oil prices fell. I would be a buyer of the following oil stocks.