gabe borenstein

Weekly Street Sentiment: Energy On Top, Financials Weakest

It appears that the market focus continues to be driven by emotions.The energy play is over and is a reflection of the greatest speculative bull move in the history of the markets .Unfortunately the lack of the final demand is leading the oil into a minor implosion.Some alternative oil technologies nay have some value.
Financials will rule in this bullish cycle in the period ahead. The bond insurers are posting some impressive gains(meeting GAAP standards),even if the hedge fund utilizing accounting based I on "I am short the stock principle" ,thinks that some of these insurers are bankrupt. I suppose that the volatility in the financial sector will continue and individual institutions may have some bad news to report.
Investors do understand that the broadest and detailed issues have been and are being addressed.
The earnings released by the some of the bond insurers are credible
Section 906 of the SOX imposes a fine of twenty years and a 5 million dollars fine for executives who willfully misrepresent the financial facts -that is why I believe that the MBIA's earnigs are correct and bullish for the market.If the fines were just as aggressive for the individuals disseminating misinformation,then some of these bond insurers would be trading 30 dollars higher.
For sure financial sector is undervalued and desrves a major allocation.