Wednesday, August 20, 2008


We are seeing volatility with a positive bias in the solar names. We also had a very good day in the energy names. I traded XTO energy today and that stock was very strong. I like the commpany and think that they are headed into the $60's.
I am still an energy bull and you know how I like to play it---RIG,DO,NOV,CHK, and now XTO. I think the situation with Russia is really going to impact the price of oil in the coming days.

I am so tired of hearing about Fannie and Freddie. They just need to pack it in because I don't see any way that these stocks are going to be left with any value. If I had to buy some stocks in the financial space, I would take a look at Northern Trust (NTRS) and Schwab (SCHW). Now my friend Ryan Krueger was the one that mentioned these stocks on the show a couple of weeks ago. I have been following both since my conversation with Ryan and I like how these have been trading. I am following Goldman Sachs with great interest. I think you will see strong support right above $150, but if it breaks that support it could go to $135. I would look to be a buyer in the $135 area.

I have had several emails from people telling me that I keep beating the same drum with the energy play. I don't disagree, but that is the safest play that I see given the current economic environment. If there is anyone out there that can make a decent case for economic recovery by the first quarter of 09, please make a comment and give me your side of the story. I would love to hear it. As a country, we are overleveraged and this is going to take some time to unwind. Every time that I go to the grocery store, I pay more for the basic items such as milk and bread. This is going to take its toll on the consumer!!!!!!

McCain took his first lead in the polls today and I think that (if it continues) will be good for the markets. The last thing that we need now is higher corporate taxes and an increase in the capital gains tax. I think that the pharmaceutical industry has been held back due to election anxiety. One stock that I think is particularly undervalued is Sanofi (SNY). They pay a decent dividend and have the kind of things in the pipeline that I really like, namely VACCINES. If you look at their pipeline, you will see that they are as well positioned as any company in the industry. The stock has been trading around $35 and I think a post election pop could propel this one to $42-45 by the end of the year. This is a very well run company that is going to serve the baby boomers very well.

I will have much more tomorrow---I have been travelling today. We hope to announce our new interview lineup this weekend.


Dollar.Discipline said...

No chance for an economic recovery prior to 09.

Anonymous said...

Historical research going back to the Truman administration shows that the stock market posts higher gains during Democratic administrations than Republican ones. Do some homework, huh? Google it and have a read. That aside in teh near-term, McCain is just more of the same old tired rhetoric and that WILL NOT be good for the markets.

Anonymous said...

To the anonymous comment about my doing homework. Are you trying to tell me that Barack Obama's administration is going to parallel the administrations of past democratic Presidents? If so, then maybe you should do some homework on the current election, huh? He is the most liberal candidate EVER!! His tax plans will stifle economic growth in this country and his healthcare plan will destroy our healthcare system. We will be reduced to an age where the best and brightest minds will not go into medicine.