Sunday, July 06, 2008

WSJ warns on energy, materials stocks

WSJ says “Energy, Materials Shares May Fall--Energy and materials stocks, the last remaining stars, are at risk of following other sectors lower.”

Of course they are at risk. All stocks may fall in a bear market. And energy and material stocks have had big runs. But even after correcting, many of the energy sector stocks are at 200-day moving averages.

The long-term positive trend appears to be in place. Meanwhile, GSG (oil) and TIP (Treasury inflation-protected bonds are holding high.)

And why so sure we're in a bear market? The headline was just posted. This is probably some kind of low.