S&P Outlook Downgrade Degrades Stocks

The stock market took it on the chin today, after Standard & Poor's downgraded the credit rating outlook of the U.S. Meanwhile the CBOE's VIX volatility rating has been very low, indicating investors have become complacent and are ignoring bad news. That's not necessarily a good thing for the stock market. This kind of attitude usually appears toward market tops. I'm looking for some better earnings this week and next to propel the market and keep the bull going for another few months. Hopefully, that will happen.

Pre-Easter Week, Will Earnings Earn Us Cash?

The markets are closed Friday, so there will be 4 days of trading, and what will the week hold? The watchword is "Earnings!" What will they do to the markets? Chevron's earnings will be announced the week after Easter; we're looking for a gradual rise and then a pop to the upside. Also an increase in dividends to $3.20 a year, 80 cents a quarter. It's the least they can do for their shareholders; they're making so much money.

Weather is getting better here in Chicago; almost time to plant the garden. Hopefully everything will rise in the spring!

Let the Geyser Blow!

Okay, the oil stocks have had a couple of rough weeks, but now it's time to start the spike. Chevron is around $105, down from $110. Up over a buck today, we expect CVX to surge when earnings are reported near the end of the month. We may be wrong, but would you bet against $105+ oil?

Coke continues to impress, but we're excited about Wal-Mart. Looking for WMT to push the $60 mark this summer, which would be an all-time high.

Anecdotal evidence seems to support a strong recovery. Are you experiencing the same thing? Have you tried to book a brunch for Easter? The restaurants are all full! My Serbian neighbor's mother is a maid at the local Hyatt hotel here in the Northwest suburbs of Chicago, it's fully booked through the month of April! All right, maybe that just proves the rich are doing okay in this economy, but I don't know -- I think things are looking up all around. And is anybody you know decreasing their spending because of the price of gas? Do you know any of these people who are supposedly going into hunker-down mode? Me neither! That's why I'm so bullish on Wal-Mart.

Okay, Happy Investing. Remember, the best things in life are free, but the next best things cost a lot of money!