Window Dressing or Not; Oil Stocks Up Today

The end of the year is often referred to as "Window Dressing" time among traders. Portfolio managers add beaten-down equities of quality companies to their portfolios. The thinking is that they can say that these companies are in their portfolios when it's time to create a prospectus or talk about quarterly results. If in January they feel the stocks are going nowhere the portfolio managers can always dump them, but if they're recovering then it's time to let them ride to higher prices!

Solar City (SCTY) rocketed 34% to nearly $60 a share Wednesday when Elon Musk, he of Tesla fame, announced he was buying a majority of the solar panel maker. As mentioned previously by this blog, Solar City is owned and founded by two of Musk's cousins. Our target remains $90. It may be ambitious to think we'll see that in 2016, but for now we'll stand by that number. SCTY is trading around $52.50 today, down 6.4% for the day but up from the hellish depths it reached at $24 around Halloween.

Oil giants Schlumberger (SLB) and Chevron (CVX) are no doubt getting a boost in part from this window dressing phenomenon. The Baker Hughes American and Canadian drilling rig count actually went up by 17 rigs on Friday, the first rise in months. Some investors may feel this is the uptick from the bottom as oil companies have cut as far as they want to (or can) cut. In any event, oil is up slightly about 1% today and SLB is up 2.25% at $69.50 and CVX is 1.27% higher at $90.36 at 10 am.

Btw, U.S. regulators are seeking more concessions in the proposed merger between Baker Hughes and Halliburton.

Happy Holidays, Merry Christmas! Let's all be thankful for this 6-year bull market that has the Dow over 17,000. May the New Year 2016 bring more of the same for the Bulls, or as I like to call us, the good boys and girls! As for you naughty Bears, be patient. History tells us inevitably your time will come.

Big Snap Back In Oil After Cratering

Oil markets continue their volatility, as the price of oil tested lows of $36.64 for a barrel of West Texas Intermediate (WTI) as it was down $1 this morning. The price has snapped back, however, and has even traded in positive territory for about an hour.

The oil majors are up off their lows, but are still being crushed for a second day. Chevron is down 88 cents and Exxon Mobil is down $1.65 in the midday trading.

Oil services manufacturer Schlumberger is down about a dollar on the day.

We're looking for oil to continue cratering, expecting it to test $30 a barrel for WTI in the coming weeks. What all this means is, it's time to hop in the car and visit grandma, Aunt Edna or whoever! Enjoy the ride, the gas is cheap!

Disney (DIS) is up $10 since our post in September, now trading around $113.  We're looking for it to hit $125 by the spring.

Oil Majors Down Today, But Up For Week

It was another down day for Chevron, Exxon Mobil and Schlumberger, but overall an up week for the oil-related companies.

Next week is a holiday week, with no trading on Thursday, so have some turkey and enjoy yourself. After all, as my cousin Tom says, "Lots of eating, football and wine. Yes, please!"

Cramer Endorses Slobby (SLB)

Jim Cramer said it is probably a good time to buy oil services equipment provider Schlumberger (SLB), or "Slobby" as it is known on the trading floor because of its symbol, SLB. He thinks a low may have been put in around the 70 mark.

Anyone a fan of Ric Edelman? I am. Really enjoy his radio show. He seems to be the most logical financial adviser out there. He's pretty funny, too, so it keeps it entertaining and not dry and stuffy, as financial shows can sometimes be. Here's a link to his latest radio show, in which he reveals "The Key to Building Wealth." 

Is Sears Going Full Press in Online Sales?

Sears Holdings recently hired a number of e-commerce execs in an apparent attempt to boost its online sales. Check out this article from Inside Investor.

Heat From The Sun -- What's Not To Like?

I like this article on why the market for Solar Panels is heating up, from MarketWatch's Myra P. Saefong September 4th. SCTY, SolarCity, is in the Galway Fund as of Monday. Wall Street analysts are looking for price targets from $66 to nearly $100 a share. It's trading this afternoon relatively unchanged around $49.

Stocks to watch:

ENERGY
Schlumberger (SLB), the oil services equipment provider, and Chevron (CVX).

SLB is trading at 76.20, + 3.5% today; our 6-month target is 85 by March, 2016
CVX is trading at 78.10, + 2% today; target is 90 by March, 2016
SCTY is trading flat around $49 today; target is 90 by March, 2016

MEDIA
Disney (DIS) should benefit when the latest Star Wars sequel is released in December.

DIS is trading flat around $103.50; our target is 125 by March, 2016

TECHNOLOGY
Apple Inc. (AAPL) is rumored to be working on a TV streaming service that will cost $40 a month. If that comes to fruition -- as J.P. Morgan said it will -- then Apple should rise nicely.

AAPL is slightly off at $116, - 0.4% today; our 6-month target is 130 by March, 2016


Disclaimer: As always this blog is my opinion only. All quotes are courtesy of Marketwatch.com, a Dow Jones Company. We do not give tax or investment advice or advocate the purchase or sale of any security or investment. You should always seek the assistance of a professional for tax and investment advice. 

Interest Rates Will Rise Again, But When?

Seems the stock market is waiting forever for the Fed to raise interest rates. This uncertainty is leading investors to take a "risk off" approach, and thus we have the 10% correction we've lived through the past few months.

Thomas H. Kee Jr. speculated on Marketwatch today that if Fed Chair Janet Yellen raises rates, it could lead to a market crash, because the Fed's curtailing of its economic stimulus plan has amounted to a tightening monetary policy, and any further tightening (by raising interest rates) would be a problem. Especially for those owning stocks.

I tend to think the market has priced in a rise in interest rates, and the market may rise when it finally happens, assuming the Fed is transparent about being willing to loosen monetary policy in the future if the economy starts to stumble. According to most metrics -- employment, corporate earnings -- the American economy is booming, and I continue to see it doing so.

Stocks to watch:

Schlumberger (SLB), the oil services equipment provider, and Chevron (CVX) may recover if Saudi Arabia succumbs to pressure from less well-heeled members of OPEC and is forced to stop flooding the market with oil.

SLB is trading at 72.69; our 6-month target is 85 by March, 2016
CVX is trading at 75.78; target is 90 by March, 2016

Disney (DIS) should benefit when the latest Star Wars sequel is released in December.

DIS is trading at 103.75; our target is 125 by March, 2016

Apple Inc. (AAPL) is rumored to be working on a TV streaming service that will cost $40 a month. If that comes true -- as J.P. Morgan said it will in a note today -- then apple should rise nicely.

AAPL is trading at 115.33; our 6-month target is 130 by March, 2016


Disclaimer: As always this blog is my opinion only. We do not give tax or investment advice or advocate the purchase or sale of any security or investment. You should always seek the assistance of a professional for tax and investment advice.