Friday, February 19, 2010

Weekly Report

          What a day today was, we had the after shock of the Federal Reserve hiking the 'Discount Rate' along with option expiration. Crude oil ($WTIC) rallied and the drillers Transocean (RIG) & Pride Int'l (PDE) moved on the Smith International (SII) news that it was being bought by Schlumberger (SLB). A few months ago BJ Services (BJS) was bought by Baker Hughes (BHI).
The Euro ($XEU) again rallied even as the dollar hit the 81+ level. The debate continues as some see further strength in the dollar and the Euro heading to 128. Maybe so, but I continue to see a bounce in the Euro near term and the dollar to pullback toward the 78 level. Gold in Euros has been trading at new highs, perhaps as investors shy away from the currency and seek safety in gold. Several weeks ago I highlighted that Itz Pix traders lighten up on the metals and increase their weighting in energy (oil). For the week the dollar moved up 0.24 to 80.54; the S&P was up 34 points, gold +$29, silver +85cents and crude oil +5.78 to $79.91!!! I continue to target $90 plus for $WTIC.

For more up to date market commentary follow us on Twitter

No comments: