A Gauge between Real Prices and Funny Prices

If one looks at a chart comparing prices of two Oil ETF’s, XLE and USO you can see how funny money and expectations based on funny money are baked into current markets.

USO is a oil ETF that can be used as a proxy for crude oil.  As of today it is 21 percent below its February 2009 low.

XLE is a oil ETF that is based on oil company marketing/refining/etc.  As of today it is 101 percent of its March 2009 low.  Go figure, how much of the XLE price is fluff.

As of the close today, XLE did give a technical trend sell signal. As always these days, keep in mind these are FED markets, not Free markets.