Thanks to what is happening in the middle east, anything related to energy production went up and anything related to energy consumption went down. Four of my top 20 funds have an increasing deviation from their moving average for the last two weeks and are buys. They are all energy related. The 15 of the others do not quailify as buys and are energy consumers. An increase in the cost of energy is a tax to every consumer. Gasbuddy.com suggestes there is an excellent chance that American gasoline prices could hit new highs. The site points out that if the 3+m barrels of crude oil Iraq pumps every day, are halted, the US and the other Iraq oil customers will have to find new sources. “Less crude oil available means higher prices, it’s the old fundamentals: supply and demand.”
IBD TBP’s Current Outlook is “confirmed uptrend” – time to invest. IBD TPB’s Market Pulse also indicates the number of distribution days for the S&P 500 is 2 and for the Nasdaq is 1. When the number reaches 4 it is a time to start being careful. Distribution days are down days for either index with increased volume. That suggests the managers of large portfolios are selling.
My current investments:
Nordic has a price of 48.85 a sell price 46.94, a relative rank of 06, and is a hold.
SAirTransportation has a price of 65.17, a sell price 64.21, a relative rank of 08, and is a hold.
SElectronics has a price of 77.17, a sell price 73.31, a relative rank of 01, and is a hold.
STransportation has a price of 82.03, a sell price of 77.93, a relative rank of 05, and is a hold.
SNaturalGas has a price of 45.13, a sell price TBD, a relative rank of 02, and is a buy.
I had an error in my quote on SElectronics last week. Thank you for the emails.
My portfolio changes this weekend:
IRA #1 – no change
IRA #2 – invest 20% in SNaturalGas
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 100% invested