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.
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