The stock market is acting pretty much as we had expected. Despite all the negative news, it looks as if the market is attempting to stabilize, and the year-end rally should begin to unfold soon.
Energy prices are coming down, and consumers should begin to feel some relief soon. On the spot market, gasoline is trading around $1.64/ gallon, and when you add in about .45 cents tax and another 15% profit of about .25 cents (depending on where you live), your looking at an average price of $2.34/ gallon.
Energies
Crude Oil (CLZ5) Dec 05 59.58 -1.05
Crude Oil (CLF6) Jan 06 59.79 -1.03
Crude Oil (CLG6) Feb 06 60.07 -0.95
Crude Oil (CLH6) Mar 06 60.12 -1.04
Gasoline Unleaded (HUZ5) Dec 05 1.6322 -0.0415
Gasoline Unleaded (HUF6) Jan 06 1.6547 -0.0385
Gasoline Unleaded (HUG6) Feb 06 1.6790 -0.0257
Gasoline Unleaded (HUH6) Mar 06 1.6865 -.0267
Heating Oil (HOZ5) Dec 05 1.8600 -0.0397
Heating Oil (HOF6) Jan 06 1.8910 -0.0392
Heating Oil (HOG6) Feb 06 1.9000 -0.0377
Heating Oil (HOH6) Mar 06 1.8885 -0.0252
Natural Gas (NGX5) Nov 05 12.700 -0.172
Natural Gas (NGZ5) Dec 05 12.962 -0.205
Natural Gas (NGF6) Jan 06 13.340 -0.214
Natural Gas (NGG6) Feb 06 13.229 -0.255
The oil "Big Boys" (See Oct 6.2005 Journal) are still adding to their short positions in crude and gasoline futures. Once I get today's latest data, I'll pass it along.
The latest "hot" stock that has not been recommended by the Wall Street "Spin Machine" is the CBOT Holdings,Inc (BOT). The stock has been up every day since going public last week. Its sister company, the Chicago Mercantile Exchange (CME) is being recommended all over the board, and is now trading over $300/share.
If you are an aggressive trader, you might want to look at the BOT on a pullback.
OIL STOCKS
Obviously the oil sector has been hit hard over the past few weeks. On CNBC痴 "Squawk Box", Steve Forbes has been predicting that oil will fall to $35/bbl. I don't think that will be the case anytime soon (if at all).
I think you'll see some stabilization between $55-60. Even at these levels, I think you see many energy stocks begin to gap higher.
