When I called a top in oil last October, I added the caveat that we could get a replay of the previous year’s delaying ramp that would keep stocks rising into the year-end. As it turned out, it wasn’t just a delay; it produced marginally new highs (+3) that sent SPX to new highs as well.
This all occurred against a backdrop of soaring inventories in crude and an increasing rig count — which made the price manipulation all the more obvious. Yet, here we are. CL is back to where it was in October, at roughly double its Feb 11 lows. With inflation having reared its ugly head, thanks largely to oil, is it any surprise oil is off sharply the past two days? And, is it any surprise that the other members of the “market” support troika are working overtime to keep stocks from following suit?
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