Wikinvest Wire
Thursday, March 03, 2005
Oil's Big Move
Oil has continued its huge move up today. The oil stocks I own are participating in the rally ( I imagine the Unocal (UCL) news is helping too). But as I look across the energy stock universe the move is not as big as I might have expected. This may be a signal that the equity market does not think $55 oil can hold. I am fairly agnostic about what the price of oil does in the short term. I am overweight the group for long term demand reasons and so I would not look to sell into this strength but for shorter term people it may makes sense to lighten up a little bit.
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3 comments:
interesting that the airline sector was up today (+1%) even though oil hit $55/bbl.
Thoughts on XOM now the largest mkt cap co.? Time to short the oils? Tough decision, but the warm weather is right around the corner which should affect some traders. Time to rotate into the techs? They have been beaten up pretty good lately-RIMM especially. Currently long AMD, RIMM, JNPR, NOK, MOT, BRCM, AEXCA, & YHOO.
Or one may want to read Stephen Leeb's book-The Oil Factor-which predicts $100 oil in the next decade-I said decade-not month.
Would love to read you opinions on these topics.
Ray-email at raygu@comcast.net
What are your thoughts about using a sector fund AND dollar cost averaging to invest in energy or natural resources?
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