Wednesday, April 25, 2007

Dow 13K

The Dow finally broke through the 13,000 barrier today, and has since responded by moving even higher. Positive earnings continue to be the major catalyst as it seems almost no big company is missing on their quarter results. It has been predicted that the health of the consumer is deteriorating, but then you see positive news from Amazon, which surprised me.

It is a pretty broad rally right now, but oil stocks in particular are doing well. All of the drillers that I've mentioned have moved up significantly. Noble (NE) is advancing higher than the others, and this is probably due to the fact the others haven't reported earnings yet, and Noble reported a great quarter. I look for the entire offshore drilling industry to be good, especially the international names.

I think that the market could trade even higher throughout the rest of earnings season. We will probably give up some of the gains heading into May and June, which tends to be slower months.

But for now, things are looking strong. Not many buying opportunities on the long-term side, but there are some trades to be made.

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