Thursday, January 11, 2007

The Schmeissing Continues



The sharp drop in oil is continuing today. Oil is down over -3% today, falling below the $52 level for the first time since June, 2005.

Looking at the oil ETF (USO), it is now down over -14% ytd. That is a huge move in such a short period.

While longer-term, a drop in energy prices is bullish, the speed of the move is causing some dislocations in the market that I believe are spilling over and causing some weakness is the broader market.

2 Comments:

At 2:13 PM, Blogger Jennifer said...

Check the put/call ratio and be a contrarian seems to be a better indicator of very short term market movements at this time.

 
At 4:41 PM, Blogger Pak Firman said...

Kenali dan Kunjungi Objek Wisata di Pandeglang
Keyword Kenali Pandeglang
Mohon dukungannya yach....?!
Semangat..semangat..!!

Pandeglang telah hilang Kenali Si Dunia Aneh

 

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