Friday Outlook: Resumed Stability?

Some traders were getting out of Wall Street early Thursday as they head to their cozy weekend digs in the Hamptons. I wonder if they bitched about the cost of gas getting there or their recent utility bill. Anyway, things were relatively quiet as I suspect stabilization policies at trading desks were in place.

Volume was light and breadth just okay. The heavier upside volume versus advance/decline issues in the NASDAQ probably meant investors were chasing the bigger names.



Now that oil’s only $130 we can all relax right? You might recall that when oil reached $80 in the summer of 2006 stocks fell. Subsequently prices fell, bottoming below $60 as 2007 began, at which point stocks rallied. We’ve had successively higher moves followed by some backing and filling and stocks have followed inversely at the extremes. On each occasion many pundits called for prices to fall to $40. Remember? Or do we all have short memories. So, today with prices dropping to only [cough] $130, everything’s fine and we can all go buy stocks again.



















































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Comments

[Nate C]

I agree about owning TIPS--no point if the government continues to lie and say inflation is "elevated" at 4%. In reality inflation is around 7-10%. Ask anyone on the street and they will tell you prices have gone sky high. But it seems that Chairman Ben is the last guy to know it.

[shopa]

This is my favorite blog.

[starvinsargent]

David keep up this great service please! I missed the posts last week. Any thoughts on large caps using PWB? Do you see mid caps as a good choice in the next uptrend? I use MVV, UKW and VOT for those. Many thanks

[David Fry]

I'll work for food.

And, who knows when the next uptrend will be? Maybe we'll go south first.

[User 164277]

Since you share my interest in TBT----any hints whatever on dividend policy? TLT is monthly and generous.....other short funds (e.g. SKF) pay them.....nothing in any of the literature that I can find....any guidance, anywhere? Speculation?

How about speculation on future dividend policy of UHN, which some might find attractive on any dips?

[David Fry]

If you're short you pay and with TBT you'd pay twice. I'm unsure re: UHN.