Oil Rises Over Hurrican Gustav Concerns in the Gulf

DJIA + 26.62, +0.23% SP500 + 4.67, +0.37% NASDAQ Comp. - 3.62, -0.15 % Russell 2000 + 2.97, +0.41% Exchange NYSE NASD Advancing 1,960 1,549 Declining 1,129 1,297 Oil $116.27 +$1.16 Gold $828.10 +$2.40 $SOX 356.98 -3.52 Strongest Sectors: XLE +2.04%...XLU +1.09%...XLF +0.80% Weakest Sectors: XLK -0.39%...XLP -0.39%...XLV -0.12% Oil was higher over concerns that Hurricane Gustav could disrupt oil flow in the Gulf of Mexico. Financial stocks were stronger today with the financial sector ETF, XLF, with the third largest sector gain for the day. Money center banks BAC, JPM, C, USB, DB, IBN, and WFC were all higher on the day. With both oil and gold up for the day commodity related stocks oil, coal Ag and coal stocks rose moderately. The key for these groups will be if weather disrupts oil flow in the Gulf? If it has little or no impact on oil supplies don’t be surprised to see oil fall these commodity related stocks with it. The broad indices held above support levels and the RUT stayed above its 200 DMA for the thirteenth day in a row. On the DJIA and SPX which a intermediate term neutral watch last weeks low as the near term support. On the Nasdaq and RUT which are still intermediate term up, watch horizontal support horizontal support in the area of their 50 DMA. Oil continues to be the primary driver with credit and financial markets the secondary driver for stock prices at this time. Our short-term trend status is neutral. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF Down Trending: XLE, XLU Monday’s Action Moving Up: MA, X, ANR, POT, FWLT, BTU, CF, FSLR, NUE, SCHN, FRE, COH, INFY, Moving Down: BIDU, SOHU, LDK, PCLN, DECK, STRA, FMCN, BRCM, AMZN, UAUA, PNRA, JASO, GRMN, SINA, EXPE, DRYS, BUCY Intermediate Term Market Trend: Up Short Term Market Trend: Neutral