Watching the SPDRs Crawl

Market Watch (Five Day Trading Range)

• XLF Financials weekly trading range 24.33 to 25.18 Friday close 24.76
• XLK Technologies 24.32 to 25.42 close 25.35 BOUGHT 1/25s call
• XLP Consumer Staples 28.05 to 28.51 close at 28.49
• XLV Health Care 31.47 to 32.18 close at 32.12
• XLB Materials 43.11 to 44.79 close 44.45
• XLY Consumer Discretionary 31.78 to 32.60 close 32.49 MISSED 1/32s @ 2.15 Put
• XLI Industrial 38.06 to 38.99 close 38.84
• XLU Utilities 40.81 to 41.61 close 41.38
  
• XLE Energy 88.52 to 85.02 close 86.00

Movement is the key for these SPDRs. Energy stumbled a bit this week in part to an price manipulation inquiry. As mentioned in previous articles...the stock markets in general are to a degree all about manipulation. Energy prices however allow a perfect time for a bit of DC style grandstanding... Look for energies for a 3-5% move up or down next week. (1)

A number of the CNBC crew called the top of oil which invariably means that oil still has additional upside potential. The consumer may be taking on water, but evidently is not dead. However. depending on spending habits...for 10-15 % of the population the stimulus checks won't be enough. (2) That is part of the reason XLY should see some additional movement by January.

Last, the weakened state of the U.S. dollar (currency traders can say whatever they won't about the dollar's strength) is just taking a temporary breather. XLF (didn't someone say it was time to buy a couple of weeks ago?) was not helped out by KEY Bank's warning that losses could "double" ... this also did not bode well for RKH which has a beautiful downward movement on its 200 day average. Look for at metal prices next week. It appears that a sell off may be a bit over done at this point...(London Metal Charts are just ugly)..... VGPMX continues to hold its own!

Is Zeus , AKS, and CLF still a deal? I would have to think so!!! Private equity investors are increasing a stake in CLF as I write. FSLR could well be an ideal candidate for a strangle. The volatility is there. Five day high of 278. Low of 252. Currently 267.

Thought of the Week
Re-evaluate revolving debt rates on credit cards and home equity loans. Chances are if you have a good credit rating, there are plenty of lenders who would like to work with you. (3) For more information visit: www.creditmall.org

Sources Cited
1. Money Central/MSN
2. CNN Money
3. Blogging Stocks

Disclosure: Long