Friday, March 02, 2007

Crude Oil Showing Relative Strength



The only market I have long right now is the ETF for crude oil (USO). As you can see in the above chart, oil is showing relative strength when compared to what other markets have done this week. Notice in the lower panel the ratio line of oil vs stocks. Oil is clearly outperforming stocks. It wouldn't surprise me if money began leaving the oil market too next week, but until I see that happen, I am staying long.

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