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Chart of the Week: THE PRICE OF OIL VERSUS STOCKS

Posted By Barry Ritholtz On August 9, 2004 @ 2:32 pm In Finance | Comments Disabled

Is Oil topping? It certainly looks extended below, as it has accelerated to a third and increasingly unsustainable up trend angle. When crude broke long-term resistance in the $41-42 areas, at the end of July, stocks attempted another rally, in anticipation that crude oil would turn down against resistance. Once crude broke to new all-time highs, the short rally in stocks failed.

THE PRICE OF OIL VERSUS STOCKS
click for larger chart
oil_prices [1]
Source: Decision Point Research [2]

Carl Swenlin notes that “Oil has moved into uncharted territory and is above historical resistance levels. It could be headed for a major blow-off, or it may have moved permanently into the bottom of a new long-term trading range.”

Random Items:
CASH KILLS [3]
Cement shortages are spreading [4]
Decentralized Intelligence [5]
The President’s Jobs deficit [6]
SECURITY IN THE CONTEMPORARY WORLD [7]
How not to buy happiness [8]

Quote of the Day:
“To do the useful thing, to say the courageous thing, to contemplate the beautiful thing: that is enough for one man’s life.”
- T. S. Eliot [9] (1888-1965)


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/08/chart-of-the-week-the-price-of-oil-versus-stocks/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/comments/images/oil_prices.html

[2] Decision Point Research: http://stockcharts.com/commentary/archives/cww20040807h.html

[3] CASH KILLS: http://newyorker.com/talk/content/?040809ta_talk_surowiecki

[4] Cement shortages are spreading: http://online.wsj.com/article/0,,SB109200765372886075,00.html

[5] Decentralized Intelligence: http://slate.com/Default.aspx?id=2104808

[6] The President’s Jobs deficit: http://www.economist.com/agenda/PrinterFriendly.cfm?Story_ID=3079682

[7] SECURITY IN THE CONTEMPORARY WORLD: http://www.oldcolo.com/McNamara/mcnamara.txt

[8] How not to buy happiness: http://mitpress.mit.edu/catalog/item/default.asp?ttype=6&tid=14403

[9] T. S. Eliot: http://www.english.uiuc.edu/maps/poets/a_f/eliot/life.htm

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