Wednesday, July 22, 2009

Oil Stocks Not Participating In This Rally




Many of the indices are making new highs for the year with the NASDAQ leading the way on the upside. If you look at the above chart you'll notice that the oil stocks are not participating in this rally. The OSX (oil drillers) have not been able to break high with the rest of the market. This sets up what I refer to as a bearish divergence which means we could see further weakness for these oil stocks if the overall market begins to soften here.

3 comments:

Kevin said...

I second this, Kevin. Same thoughts on the Solar stocks, leaders like FSLR is showing divergence to the overall market.

Kevin said...

Couldn't agree more. Same with the solar stocks. Leaders like FSLR is well off highs, and showing divergence with the overall market.

Anonymous said...

Some great post Kevin , it would sure be nice to be able to get a feel for the long term. From all my research we have a tremendous amount of money on the sidelines and that has now matured from getting interest, only to find their return to be 1.5 to 2 % annually. This should eventually push a massive amount of scared money onto the markets , the big question is when ?
Thank you for all your effort
Mike

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