Pump Oil into Your Portfolio
Though the stock market fell victim to the Grinch during the shortened holiday trading, MoneyShow’s Tom Aspray does some after-Christmas shopping for stocks that could look attractive in the new year.
Stocks drifted lower Monday but are trying to bounce in Wednesday’s early trading. The short-term technical readings suggest more choppy action is likely over the near term before a last minute, temporary fix is passed.
The failure to pass a quick fix could cause a sharper correction in early 2013. The intermediate technical readings and improvement on the economic front do favor higher prices in the 1st quarter of 2013. I do expect the major average like the S&P 500 or Spyder Trust (SPY) to gain double digits during 2013.
Of course, from a seasonal standpoint stocks are typically strong into the middle of the year, and I would expect to see more signs in the first quarter that the economy is actually getting stronger. That is one of the reasons I have been recommending that the current weakness be used to stuff your stockings with stocks.
The energy sector typically has its strongest seasonal period from early February through June and it has been one of the weakest sectors so far in 2012. While there are no clear signs yet that the energy sector has bottomed there are bullish signs from the crude oil market suggesting a low is in place.