Energy and Financials (25 Jan 2008)

11.16am - The market has a funny way for drawing in the bulls and the bears...either way this will only strengthen the move....

Crude Oil is beginning to gather some upside momentum, DIG and OIH had a good run last week.
On the fundamental side, there is still an oversupply of Crude Oil and the markets are anticipating demand to balance up with supply with time.

On the other hand the Dollar is strengthening and the EURO is weakening.

Next week major commodity companies like CVX, COP, XOM, BHI, HES are reporting their earnings. There will also be some medium sized commodity company earnings the week after as well. So I expect some impulsive sell off and possibly some agressive buyers coming in to buy the dips once the dust settle.

Financials have been rallying off there lows and I expect some pullback before any further upside at some point.

Keep an eye on WFC as well.

We should be quite ready for a rally once all the major Energy and Financial companies have reported their earnings by mid February.

There should be a lot of activity for daytraders like me and you for the whole week to keep busy.

My watchlist for next week:
POT, GS, BNI, UNP, JPM, PNC, OIH