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.
Thursday, April 1, 2010
Crude Oil Breaks to 18 Month Highs, But Energy Stocks Lagging
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows