Wednesday, July 30, 2008

Wednesday Update

Good Wednesday morning to all U.S. readers, good afternoon and good evening to all others, wherever you may be !

Wednesday, July 30th brought Crude Oil inventories for week ending 7/26 at 10:35 ET. A bigger draw in oil inventories has bumped prices up, but only slightly so far. POTC's bear market rally thesis hinges upon crude staying below $128/barrel this entire week. And if we see that break of $120/barrel this week, "not for more than a blink"(Joe Terranova), than the inflationary plays like coal, solar, and agriculture will unwind. Do we believe this scenario will unfold this week? Probably not, as Iran is making negative headlines again with 6,000 supposed centrifuges:

After market earnings from: Akamai Technologies Inc. (AKAM), estimate $.32, First Solar Inc. (FSLR), estimate $.58, and Visa Inc. (V), estimate $.48. We prefer AKAM over all on the long side.

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