Wednesday, May 9, 2007


The Fed left rates unchanged, and stocks are responding by rallying this afternoon, which is a fairly typical response. I'm still concerned about inflation though, and although it isn't hurting stocks yet, I think it will.

But as long as things are positive, we might as well make some money. The blue chips are almost all looking strong right now. Coca Cola(KO), Goldman Sachs(GS), and Apple (AAPL) are looking particularly good.

Frontier Oil(FTO) dropped a couple of percent on earnings and lower crude prices. I'm still strong on both Frontier and Valero(VLO) heading into this summer and the possibility of $4 gas.
Buyers seem willing to buy on any pullbacks, and if we don't experience any major political or economic announcements, I don't see why the Dow won't hit 13,500 fairly soon. The big correction that the bears are calling for just seems to be put off.

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