I’ve got to tell you, I’m frustrated. You know how bearish I’ve been about crude oil. Day after day, this has been an incredibly consistent market. I'd give anything for the S&P 500 chart to look anything like crude's. The equivalent percentage drop in the Dow 30 would be about 4,100 points -- just to give you some perspective. And that’s only since June 9!
But energy stocks are just barely moving along. They’re down a little bit, sure, but why are they acting so strong? And what’s worse, when crude inevitably does get a bid, will energy stocks simply explode higher? It’s driving me absolutely nuts.
Look at how the energy-sector ETF compares to oil. A bit of a divergence, wouldn’t you agree?
Even worse, oil and gas explorer XOP is actually UP by half a percent.