Energetic
Energy and utilities ruled the roost Friday, training the
attention of money where it was focused at the beginning of the week began:
fixated on sky-high oil prices and natural gas prices. Saber rattling on the
Iraq-Kuwait border reminded traders how energy prices got so high last time they
were at these levels, during the Persian Gulf Crisis in 1991. Besides a
potential dispute about who owns the oil under the shared border, hurricane
season still presents the specter of production halts in the Gulf of Mexico as
oil-watchers are left wondering if enough (heating) oil and gas will flow to
restock depots up to 40% emptier than last year and prevent shortages this
winter.
With such elevated energy prices, there few were left
wondering where to let money flow. The energy SPDR
(
XLE |
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PowerRating) notched a new
all-time high close, but only by 1/32, as the most heavily-weighted combination
of oil and oil service stocks on the SPDR all closed positive with gains ranging
from up1% to up 5%. Coastal
(
CGP |
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PowerRating) was the standout in this group, zinging to
rarified levels in its seventh–and best–consecutive weekly push to an all-time
higher close. Friday’s action left the XLE in the number one spot in the weekly
RS running, now with a 97 reading.
This is lucky number 13 for the Utility HOLDRs
(
UTH |
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PowerRating).
The weekly bars on the holding depository receipts have gone almost vertical
since their inception last June, and ended this week with their 10th weekly gain
in 13 outings. The composition of this HOLDR appears to have some new economy
elements working for it as well, as component companies like Williams
(
WMB |
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PowerRating)
are involved in providing access for broadband communications lines along their
more traditional utility access pathways. Ten of the 20 stocks on this HOLDR
closed at new contract highs and all but four ended green, leaving the UTH up
1.4%.
On the other end of the chart, the iShares of the Malysia
Fund
(
EWM |
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PowerRating) came off their lows of the year to rank third in the daily
percentage finishes and handed in one of the best weekly RS readings, up 92.
The best closers Thursday gave back just over half of
their gains Friday as traders wait for enthusiasm to return to tech–and in
turn–to the Internet. Thursday, the Broadband HOLDR
(
BDH |
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PowerRating) and the Internet
HOLDR
(
IIH |
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PowerRating) caved 2.9% and 2.8%, respectively, undercutting the Nasdaq
Composite’s 2% decline in the benchmark’s second weekly finish underwater this
month.&