We have had very little snow this winter in New England. That’s great for me, but it stinks for the ski resorts. Since the resorts can make snow, they have been open and looking for business. However, psychologically New Englanders need to see snow in their back yards to get the mood for skiing.
The same is true for oil prices. Until winter truly arrived, investors were in no mood to buy oil. As we suffered through our coldest week this winter, oil prices shot up 6.5% for week. It moved up 5% on Tuesday alone. The volatility of commodity prices always amazes me. A 5% one day gain in the DOW would be talked about forever, but for commodities it was just another day.
Oil’s little brothers Gold and Silver started off the week following big brother higher. However, those gains were wiped out on Friday as Gold and Silver fell 1.75% and 2.5% respectively on rumors of possible gold sales by the International Monetary Fund (IMF).
So, how did our stocks fare in such a volatile week?
The Fab Four from the article “The Commodities Bull Market is Back” was up 0.7% for the week. It was paced by weekly gains of 5.0% , 2.4% and 2.1% from PCU, BHP and PBR respectively. HBM was the only non-conformist closing down 6.5%. The Fab Four is outperforming the S&P 500 year to date 2.9% vs. 2.1%.
Here are the rest of the regulars:
SOX – Semiconductor Index
CEF – Gold and Silver Bullion ETF
CRESY – Argentine Beef, Grain and Farmland
GDX – Gold Mining Stocks ETF
GLD – Gold Bullion Exchange Traded Fund (ETF)
PHO – Water Resources ETF
USO – Oil ETF
BBO (Big-Build Out) – basket of 12 stocks critical to the industrialization of BRIC
BRIC – basket of 4 country ETFs: Brazil, Russia, India and China
Real Money – actual trades from one of my portfolios
Refer to the following links for more information on above stocks.