Monday, November 09, 2009
Relative Weakness in Oil
Recent posts have looked at several markets that have been lagging following the stock market lows of early last week. Those include small cap stocks, the number of overall stocks making fresh 20-day highs, financial stocks and shares in Japan, and let's now include crude oil (USO; above chart). While stocks and gold are trading above their 10/29 highs, oil is well off that mark. Let's see if early morning strength in oil can bridge that gap. As we approach the October bull highs in stocks, I'm watching these potential divergences among risk assets closely.