Mastercard came out today with great numbers, but lowered guidance. As with many earnings plays this season, it is getting killed. The CEO's comments were slightly vague as to why margins might be lower in 2007. I can only speculate that it is increasing competition from Visa and online merchants that are putting pressures on the company. Otherwise, MA would have pricing power and could keep things rolling next year. I think this story is dead for the time being.
In the spirit of going with what is working now, commodities are moving extremely nicely. I am adding to my USO position in the wake of the breakout over $60. I am also looking for an upside breakout in OIH, which has been flat to trending up recently. I like it here. I'm also still long RIO and GLD. Allegheny's chart (ATI) is looking strong and I may move in here as well.
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