Tag - AEZ

Yesterday we saw a nice move in the markets.  Small-caps bounced back after a two-day losing streak and the Russell 2000 rose 8.22 points to 570.62, or 1.5%.  The Dow, Nasdaq, and S&P 500 were essentially flat.  This is typical of small-cap stock movement; they tend to lead both to the upside, and to the downside. 

Yesterday's buying in small-caps is a bullish sign: investors are looking to add higher beta stocks to their portfolio when these stocks are down.  The Russell 2000 small-cap index saw 1331 advancing stocks to 621 declining stocks. The buying clearly shows that investors are finding good entry prices for attractively valued small-caps...

Between last Thursday's close and this Wednesday's low, the group was down an average of 28.66%.  Yikes, that's a pretty good dip.  Steep declines like that suggest investors are stampeding toward the exits.  I'm looking for the stocks to find support. 

The first support line is the 50-day moving average.  Almost this entire group of stocks bounced at or near this support line.  The chart below shows this for Tri-Valley, which performed perfectly.  It is not always this precise, but if you look at charts for the others you'll see similarities.  If this group can hold their 50-day moving average lines, that support level is a good entry point.  If they break lower, look down to the 200-day moving average.  That's quite a drop...

Yesterday, oil rallied to close above $81 a barrel, the first time the precious commodity has hit that level in 2009. Oil prices gained momentum after the U.S. government released a report showing that crude inventories rose by half a million barrels fewer than expected.   

The rise in oil prices, and many other commodities prices for that matter, has many wondering if the market is too bullish given that economic growth is uncertain. Plus, much of the rise in oil has come on the back of a falling dollar.

You’ve probably heard that renewably energy sources like wind and solar will reduce the demand for oil. Government programs that incentivize their use have worked in places like Brazil. But overall, they haven’t slowed the relentless rise of oil prices.

While these factors might make the rise in oil prices seem unsustainable, it’s more likely that normal supply and demand relationships will resume when the economy gets back on track. In other words, higher prices are coming. Peak oil (the point when the world reaches a maximum rate of petroleum extraction, after which production will always be declining) adds an interesting dimension as well. Some experts think we’re past this point, some think it won’t arrive until 2020...

Shares of Parlux Fragrances, Inc. (Nasdaq: PARL) moved up on news the Ft. Lauderdale, Fla.-based company has received an extension from the Nasdaq Stock Market to continue listing its shares on the exchange.  The maker of perfume and beauty products was late filing its financial results for the quarter ended Dec. 31, 2006, but expects to turn in the figures by April 16, Parlux said after Wednesday’s close.  Shares are up $0.40, or 7.89%, to $5.47. 

Comparable store sales at Tuesday Morning Corporation (Nasdaq: TUES) decreased 5.4% for the first quarter ended March 31, 2007, the Dallas-based retailer said this morning.  However, total net sales for the first quarter were $189.2 million, compared with $187.8 million a year earlier.  Shares are up $0.07, or 0.49%, to $14.25.