Thursday, April 1, 2010

Crude Oil Breaks to 18 Month Highs, But Energy Stocks Lagging

Please note these first 2 charts (which is the same instrument, just over 2 different time frames) has a 1 day lag, hence reflex yesterday's close.  Today oil is trading well into the $84s after touching $85.10.  We see crude oil has broken out to 18 months highs, clearing a double top formed (Jan 10/Mar 10)

Long term chart

Short term chart

Strangely, the energy stocks have lagged - yesterday there was some pop in the drillers (which is nonsense - knee jerk reaction) based on a long term plan by Obama for offshore drilling.  Not sure why this is; it's as if the energy stocks don't believe the action in the underlying commodity.

In theory higher oil prices should begin to be a tax on almost every other company as input costs will rise; as well as on the consumer (for obvious reasons).  But all news is good news... let the party continue.

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012