trader - people start fearing that the price of oil will slow
demand and slow the economy in general, so the upside for the
stocks is perceived as less, regardless if oil keeps going
higher. In general its not unusual for commodity stocks to
lead the commodity, up or down. happens often with gold.
DUG
Posted by trader2 on 21st of May 2008 at 03:41 pm
I am very surprised that DUG is up when crude oil is up $4.68 (as I write). Any thoughts on that?
stocks like DVN SLB APA
Posted by powerchord on 21st of May 2008 at 03:54 pm
stocks like DVN SLB APA SII are being brought down with the mkt -- that's why DUG is up
trader - people start fearing
Posted by Michael on 21st of May 2008 at 03:50 pm
trader - people start fearing that the price of oil will slow demand and slow the economy in general, so the upside for the stocks is perceived as less, regardless if oil keeps going higher. In general its not unusual for commodity stocks to lead the commodity, up or down. happens often with gold.
XOM if it closed right
Posted by lpant on 21st of May 2008 at 03:48 pm
XOM if it closed right now, would be a classic reversal candle....good for DUG
trader2 - remember things diverge and
Posted by matt on 21st of May 2008 at 03:47 pm
trader2 - remember things diverge and the stocks generally lead the commodity, this might be a sign that top is nearing, but we'll see