Chart of the Week: S&P 500 vs. Continuous Crude Oil Contract

This chart helps visually highlight the chart we just displayed above and hammer home the point that the next move in crude from its support should dictate near term market direction.

S&P 500 vs. Continuous Crude Oil Contract    
click for larger chart

Spx_v_crude

Source: Technimentals

As this layover chart shows crude and the S&P have tended to remain inversely related. When crude scored its recent peak (black arrow) the S&P was setting a trough (blue arrow) and as crude continued to fall the S&P continued to rally.

Random Items:

Economics Roundtable 

Amateur-to-Amateur

Economic Histories of the Opium Trade

The true story of Audion

Abolish the FCC

The Information in Option Volume for Stock Prices

Quote of the Day:

“Whoever wants to reach a distant goal must take many small steps.” 

-Helmut Schmidt, German Chancellor

Category: Economy

Unlocking Google

Category: Markets

Do Free Downloads = Lost Sales?

Category: Finance, Music

Pearls of Wisdom for Traders

Category: Markets

The kinda-eventually-sorta-mostly-almost Efficient Market Theory

“I guess we’re all behaviorists now” -Richard Thaler   One of the most widely believed theories on Wall Street is the Efficient Market Hypothesis (EMH). Adherents of this charmingly naive thesis believe that markets are an incredibly effective distributor of information. Because of this, say EMH theorists, it is impossible, therefore, to beat the market,…Read More

Category: Philosophy, Psychology, Really, really bad calls

Disciple of Stiglitz?

Category: Economy

Chart of the Week: The 10 day moving put/call ratio hit

Category: Markets

New Column up at Real Money (11/17/04)

Category: Media

“The internet is like radio for us”

Category: Music

Microsoft Conduct Is Challenged Again

wsj_format_logo

Microsoft Conduct Is Challenged Again

As it pushes to settle other antitrust suits, Microsoft Corp. faces new, potentially damaging allegations about its business conduct in a patent-theft and monopolization case pending in a federal court in Baltimore.

In a court filing unsealed late Monday, a small Silicon Valley software company called Burst.com Inc. alleges that Microsoft routinely destroyed much of its internal e-mail despite the many federal investigations and private suits it has faced in recent years, when it was often under court orders to preserve such communications.

Burst.com, whose early investors included the Irish rock band U2, filed its suit two years ago. It charges that Microsoft used Burst’s digital-media technology in Windows, solving a technical problem that was slowing the acceptance of Internet video. Burst also claims that Microsoft tried to patent the technology after a technical briefing from Burst, and altered Windows so that Burst’s product wouldn’t work. Microsoft denies the charges.

Read More

Category: Finance, Web/Tech