February 2012 – Sterling Holdings & Investments, LLC.

Sterling Weekly for February 27th, 2012 – A Look at the Price of Oil

February 28, 2012 sterlinginvestments 0

The price of oil reached a short term high of $113.92 per barrel on April 29th, 2011, and then declined to $76.78 on October 4th, 2011. What is very important about this chart is that if the price of oil closed above $113.92 per barrel, then it will have completed a “cup pattern” with a measured move to $151.06 per barrel. I consider cup patterns to be very highly reliable, and very predictable. On Friday the price of wholesale gasoline closed at $3.15 per gallon. This is a ratio of just under 35 to 1 between the price of oil and gasoline. Applying that ratio to $150 per barrel oil and you get an estimated wholesale gasoline of approximately $4.28 per gallon. That would most likely put the price at the pump close to….

Sterling Market Commentary for Friday February 24th, 2012 – A Quick Look at Oil

February 24, 2012 sterlinginvestments 0

Also, it should be noted that despite the upward movement of the Dow Jones Industrial Average and the S&P 500, the Dow Jones Transportation Index has been moving lower. For those who believe in the Dow Theory this is a negative signal for the overall market. My thoughts are that the Dow Transports are being pushed lower due to higher oil prices; additionally the Dow Jones Transportation Average is generally considered to be a fairly reliable indicator as transports companies ship goods and services, thus providing a good look at where the economy is going. If this trend continues, then the odds are that the broad market will follow the transports lower, not the other way around. ….

Sterling Market Commentary for Tuesday February 21st, 2012

February 21, 2012 sterlinginvestments 0

In looking at the charts from Friday’s market, the vast majority of the stocks and various sector indices I looked at continue have upward chart patterns. This is obviously a busllish sign for the market. However, a point of concern is that the Dow Jones Transportation Average now has a negative chart pattern and appears to be headed lower. While the Dow Jones Transportation Average may reverse this trend and head back higher, my concerns are that the rising price of oil and other regulatory issues are going to put the earnings of the components under pressure and ultimately send the Dow Jones Transportation Average lower. However, if you believe in the Dow Theory, as I do, then

Sterling Market Commentary for Tuesday February 14th, 2012

February 14, 2012 sterlinginvestments 0

A Few Thoughts on Tuesday’s Market: In looking at the charts of the various indices I track, I noticed a couple of things. The 1st being that several of the various sector indices appear to be looking as if they could easily turn lower. Additionally the Gold/Silver indices continue to look weak. The second thing that I noticed is that a couple of the high tech indices appear to have gone parabolic with their chart patterns. In effect, they sort of look similar to the chart of Apple, Inc. ‘AAPL’ over the course of the last several months. The NASDAQ 100 has also been effected by this as well. This is a result of the way in which these indices are designed. They are capitalization weighted indices, which means that the ratio, or weighting, of the stocks within the index is based upon the market capitalization of the companies that comprise the index. I have never been in favor of this form of index construction. I think it has several drawbacks, some of which can have very devastating consequences……

Sterling Market Commentary for Monday Feburary 13th, 2012

February 13, 2012 sterlinginvestments 0

In looking at the charts from Friday’s market I noticed that a pretty high number of the various sector indices I track appear to be turning negative. Also in looking at the stocks with the highest trading volume, the majority of those that are not moving sideways look weak with negative chart patterns. History has taught me that this generally precedes a turn lower by the market. My thoughts are that the recent move higher may be beginning to run out of steam. With respect to the Greek Financial Crisis, I just do not see the Greek people easily accepting the mandated reforms. I do not think the Greek Financial Crisis is over yet……..

Sterling Weekly for the Week of February 13th, 2012 – 2011 Index Performance Results

February 12, 2012 sterlinginvestments 0

I was fairly surprised when I looked at the performance results of the various indices I track. Sterling Investment Services tracks roughly 39 various sector indices. Of these indices, 3 are interest rate indices that track the movement of interest rates, and the other 36 indices are stock based indices that either track the broad market or are designed to track specific market sectors.

The 3 interest rate indices I track obviously did well as the Fed manipulated interest lower, sending bond prices higher in the process. It is tough to get any message from a manipulated market. However, what I do see is a bubble forming that I am very concerned will be far more damaging to the US and world economy when it bursts than the housing bubble was when it burst. Of the 36 stock indices I track, 13 managed to show positive gains for 2011, however it should be noted that

Sterling Market Commentary for Friday February 3rd, 2012

February 3, 2012 sterlinginvestments 0

A Few Thoughts Before the Open: One word to describe the recent market, “DULL!” Granted it has been a slow, steady upward trend, and it looks like that trend could continue; or it could reverse course at any point in time. However, from my standpoint it is somewhat tough to find any new entry points on either the long or short side that I feel comfortable with. I will take a more in depth look at the market this weekend and see what I can find…………..

Sterling Market Commentary for Thursday February 2nd, 2012

February 2, 2012 sterlinginvestments 0

The overall market moved moderately higher on Wednesday in a broad based move that saw almost every sector indices I track move higher on the day. The strongest sectors on the day were the High Tech, Biotech, Broker/Dealers, Airlines, Banking, Cyclicals. Insurance and Chemicals. Not a single stock index I track moved lower on the day. Oil was lower by $0.87 to $97.61 per barrel, and Gold was higher by $9.30 to $1,747.10 per ounce. In the grain market, Wheat was higher by $0.0882 to $6.742 per bushel, and Corn was higher by $0.030 to $6.420 per bushel, and Soybeans were higher by $0.162 to $12.152 per bushel……..

Sterling Market Commentary for Wednesday February 1st, 2012

February 1, 2012 sterlinginvestments 0

The overall market finished Tuesday mixed with the S&P 500 and the Dow Jones Industrial Average finishing slightly lower, while the NASDAQ finished the day slightly higher. There was strength in the Transports, Utilities, Banking, Airlines, Broker/Dealers, High Tech, Oil & Gas, Biotech, and Healthcare indices. There was weakness in the Gold/Silver, Commodities, Cyclicals, Consumer, Retailers, Insurance, and Oil Services indices. Oil was lower by $0.30 to $98.48 per barrel, and Gold was higher by $6.80 to $1,737.80 per ounce. In the grain markets, Wheat was higher by $0.212 to $6.660 per bushel, and Corn was higher by $0.074 to $6.452 per bushel, while Soybeans were higher by $0.36 to $11.990 per bushel.