Monday, June 23, 2008

S&P 500 low 1315.31 closed @ 1318......

S&P 500 traded in a very narrow range of 8.47 points from its low to high today.

Oil kept going UP closing higher by almost $2 around $137...

Gold was down almost $19

Consumption of Oil is higher than production...so prices are going UP & UP...a simple Economics 101 issue of Supply Vs Demand.....

I do NOT see any CONCRETE steps taken by US or any government worldwide to CURB consumption....lot of talk NO ACTION????

In my portfolio :

MRVL rating 25/30 rated for a "breakout" @ $ 17.87 for a target of $19.24

RIMM rating 10/45 rated for a "breakout" @ $148.30 for a target of $163.90..RBC Mike Abramsky raised RIMM target to $165 on prediction of a solid Q1 results......

SOL No TA...Secondary to close tonight......

Strong sectors were Oil,Gas,Steel,Ag.......

Thanks to many comments regarding great ideas to benefit from the above sectors.

BLOG does NOT give buy or sell.

Saleem

3 comments:

rosesryellow2 said...

Hi Saleem.

I figured I come by and check your blog again. I agree with your thesis overall that solar may do well if the market holds up in the fall/winter.

Regarding oil,
I gotta say I've done a lot of research on this and multiple sources (including people testifying in Congress) say that at least 50% of the price of oil is not due to supply demand of oil but due to supply/demand of futures contracts for oil.

That is to say the big investment firms like GS are buying lots and lots of contracts on places like the ICE in London and then the oil companies have to compete for these contracts to get their oil.

It's really hurtin the economies across the world...

Check this link
http://www.financialsense.com/editorials/engdahl/2008/0502.html

Wish you well, Saleem.
Jon

rosesryellow2 said...

http://www.financialsense.com/
editorials/engdahl/2008/0502.html

Copy and paste

Stocks100 said...

Hi Jon,

Thanks for visiting my BLOG & posting your message.

I still say that demand for oil in futures market is exceeding supply..speculation is only done when GS & MS are sure that they can make big $...which IS always supported by fundamentals.

I say $150 is a given !!!

Saleem