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2006-07-18 :: Italian Diplomacy

The Italians have stepped in to broker a peace between Israel and Hezbollah.  Energy prices dropped on the news yesterday, sending energy stocks down.  We purchased a bit of DrilQuip, Frontier Oil, and Helix yesterday on the drop, but the stocks dropped a bit further after we bought.  Today, oil prices have strengthened, so we should see energy stocks pop up again on their march higher.

As the rest of the market was flat, we continued to take profits in some of our weaker names, most that have great futures, but that near term are under considerable price pressure.  Companies like Lazzard, RBC Bearings, and Molex have great futures and we will likely add them back to portfolios when the economic direction is clearer.

If the Italians are successful, this will remove a major unknown from the picture and everyone can return to fretting over interest rates.  If they are not, then watch for continued unrest in the stock market.

More later!