I find few stocks in our portfolio that look like they are headed higher in the immediate future. Even though oil has had a sharp and steep decline, prices still look like they have room to drop. The test will come soon though as many oil services and some oil stocks like Hess are trading at 2008 nadir levels. At some point soon, these stocks will rise on declining crude prices and signal some kind of trading bottom. This is the only sector of the market that has had significant insider buying of late. Buying is picking up in a smattering of names, though. The overwhelming majority of insider buys are now under water. This usually portends a good time to buy. As a reminder to our readers, the ideal time to buy is usually when things look the bleakest. As Warren Buffet is fond of saying, Keep you head while others are losing theirs. It won’t be easy but buying when everything is rosy is usually a recipe for disaster.
I believe we are going to hit 1300 for sure. Probably see a little support there. But time and time again the market finds its way back to the 200 day moving average. That is a notch lower at 1277.