Big Oil, Big Winner

While
most attention has been focused on the fate of technology stocks over the past
year, the integrated oil companies have been quietly moving higher since last
summer. Whether semiconductors can assume leadership remains to be seen, but for
now I am seeing good strength in the oil groups.

Better-than-expected
earnings by Exxon Mobil
(
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only added to the recent run in the oils.
Exxon posted earnings of $1.44 per share, topping analyst estimates of $1.35.
Exxon closed up 2.83 to 88.01. The good news from Exxon spilled over into the
oil patch Monday as the XOI moved to all time highs.

Texaco
has been in an uptrend since last July, and managed to peak its head up to new
highs on heavier-than average volume Monday. I will be watching Texaco to see if
it can continue to trade higher on confirming volume. Should Texaco pull back, I
would expect to find support on its support line which extends back through the
summer of 2000.

 

Until
Tuesday,

Eddie