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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

If you are a prospective employer, please consider this site a place where you can see my passion for investing...

Thursday, May 12, 2005

What a day!

Oil, oil, oil. Holy cow. Valero down 7%. XTO down 6%. Exxon down 4.3%! Yikes. Are we finally breaking down on oil prices? I was getting excited about the pullback in oil, looking to get long (that means to buy a stock) some of the oil stocks. But, today marks MAJOR distribution - lots of volume with huge price declines. That means that the selling of these stocks was large...people saying "get me out of oil - at any price." So, now I'm not so sure about these oil stocks. I still think we need to buy 'em. But it doesn't look like just yet is the time.

A few stocks whipsawed. ISSC had broken out but whipsawed right back into its trading range.

On the other hand, this could be a great buy opportunity for something like Brookfield Homes. The stock was down today on pretty low volume. Overall, some damage was done, particularly in oils and metal stocks. The hospitals held up VERY well today. Lifepoint and Triad were actually UP. Pepsi fell slightly but held up nicely as well, as volume was quite low just one day after hitting a new all-time high. This is the place to be right now: boring stocks that are still growing.

The Nasdaq held up fairly well. The S&P and Dow were punished on some above average volume. Overall, today doesn't mark a new downtrend - remember - the markets have a history of doing the most obvious thing in the most unobvious way. What does that mean? To go up, sometimes the weaker hands get shaken out by first moving downward. Time will tell, but in the meantime, here's a watchlist of stocks to buy:


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