A Brief Update

Dimitri and I are feverishly working to wrap up our current backtesting of garbage stocks, so today’s blog will be short and sweet. I was looking at the royalty trust stocks I mentioned yesterday and all but one is trading in the green. My favorite, Permian Basin (PBT) is today’s winner, up 2%, followed by San Juan Basin (SJT), up 1.25%. In the interest of full disclosure, I bought PBT today for one of my managed portfolios.

The dog of the group, Williams Coal (WTU) is trying to break out of its trading range. A break above $10.60 that would be a buy signal.

Energy, metals, and mining stocks continue to be the market juggernauts although some of the mining stocks look like they might be set to take a breather. Because oil has broken through the magic hundred bucks a barrel mark, the oil drillers have been on fire. Those reaching new highs today are COG,KWK,REXX,and RRC. They all look technically compelling, but if I had to pick one, it would be Rex Energy (REXX). Not only is it the cheapest ($14.50) it has also suffered less in the way of draw-downs as the others. (I was going to say that it had the cleanest looking chart, but you probably wouldn’t have known what I was talking about.)

That’s about it. I’ll do a “real” blog tomorrow.

Now back to the drawing board…

Posted by Dr. Kris at 1:18pm PST

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