By Rick Glaze

The price of a barrel of oil continued down last week as inventories built up and demand had subsided. Short-term swings in price are often due more to supply and demand than the actual cost of physically extracting the oil from the ground. During the hurricanes, supply was interrupted, and the uncertainty surrounding the energy markets caused oil and natural gas prices to soar. So as crude settles back down from a high of $70 to just above $57, the question is: Will long term supply and demand hit any semblance of equilibrium?

The major stock indexes continued to firm up last week with the tech-heavy Nasdaq rising 1.6 percent and the S&P 500 and 600 steady at plus 1.2 and 0.8 percent, respectively. Sectors leading the market were retail, financial, transports and medical. The earlier leaders have succumbed to profit-taking as the market pushed down home building and oil stocks.

Individual investors always need to understand their own investment objectives carefully before implementing any strategy. Think about your goals and objectives and make sure your strategy and product selection match your needs. In your situation you may have short-term objectives like liquidity or monthly income, or you may want to know your money is available but not willing to take a low return when there is no pressing need to access it. Make sure you understand your long- and short-term goals before you invest your money.

Rick Glaze is the president of Glaze Capital Management of Los Altos and is a registered representative of and offers securities through First Allied Securities Inc.