Oil’s other View
Everyone is watching crude oil and the push being made by the oil bulls.Â It might be important to look at the actions of the oil bears.Â The short oil ETF “DUG” is the best way to get some insight.Â Obviously since it is the inverse of oil one would expect that it’s performance would be down since oil pushed into the $ 130 plus area.Â But that is not the case, as of yesterdays close it’s price has gone up 11 percent since the low on May 19, 2008.Â Either these investors are stubborn, out of touch, or know something that the regular market is missing.Â
Yesterdays announcemeent of the success of talks with North Korea in the nuculear stalement is a strong case against the Israel / Iran attack scenario that has played a big part in the final blowup of the oil bubble.Â Apparently talking and negotiating can work.Â
In our opinion their is still going to be a summer rally.Â When the real crash comes look for the areas of excess to be the leaders on the downside, stocks like Exxon, Apple, and Monsanto.
6:18 AM CDT