Thursday, April 12, 2007

Market Recap

A strong day in the market with the major indices closing in the green.

The railroads did really well today in part due to Warren Buffett's decision to buy an 11% stake in Burlington Northern Santa Fe. Call it the 'Buffett' affect. Did he not rally the oil sector last year with his stake in Conoco Phillips ?

The banking sector continues to underperform due in part to the subprime crisis. A strong broad based rally without the participation of the banks is not a bullish sign.

The tire industry group has been up over 50% year to date. Who would have thought ?

The home builders are down nearly 20%. I would have thought it would have been worse.Its just that the builders are so heavily shorted that the slightest news rallies them.

Evidence is mounting that consumer spending is slowing. Hey, just hand them out some
0% interest, no payment for 1 yr credit cards and that will take care of the issue.

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