Week in Review 7/20/07 – DOW 14000, If Only For One Day

The DOW closed at 14,000 on Thursday for the first time in history only to sell off 150 points the next day.  Subprime woes took some of the blame, but disappointing earnings were the true story.  Intel kicked the week off with a stink bomb.  Revenue and earnings were in line with expectations, but profit margins were down.  On Thursday and Friday, the eggs continued to be laid by Google, Microsoft, and Caterpillar.  It was just a pathetic start to earnings season.  For the week, the DOW, S&P 500 and NASDAQ were down -0.4%, -1.2% and -0.7% respectively.  In the midst of this carnage, the semiconductor index (SOX) was up 1.3%.

A few weeks ago, I was excited as the Grand Daddy of semiconductor stocks – Intel broke out to new highs.  I was excited not because I own Intel, but because higher prices would bring new money to the market. Intel and others of that ilk are still sentimental favorites, but the money is being made in the new kids on the block. SanDisk maker of flash memory for devices such as the Apple’s iPod and iPhone led the SOX to a positive close this week.  As long as the SOX hold up, I am not nearly as bearish as many turned on Friday.

Since the bulk of my money is in commodity related stocks, the only reason I really care about the general market is sentiment.  In a down market, the good often will be thrown out with the bad.  So, to prevent the studs of the BBO from being thrown out a rising DOW is helpful.

It was a great week for commodities.  Gold, Silver and Oil were up 2.6%, 2.2% and 2.2% respectively.  Copper led the charge in the base metals.  For the week, it was up 3.1%.  Gold stocks are starting to show signs of life again closing up for the 3rd consecutive week.  For the week, the XAU was up 4.8%.

How did the TTaMG portfolios do this week v. S&P 500 1.2%?

  • Fab 4    0.0%
  • BBO     -0.4%
  • BRIC  -1.1%
  • Real Money   +2.5%
  • TBS     +0.3%
  • MDs Ag Play  -0.8%

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