Monday, July 11, 2016

Oil Fakeout

Speaking of fakeouts, today we learned that the global glut of oil is growing again and it's twice as wide as it was in 2009 at the worst part of the Financial Crisis...

CNBC July 11, 2016

"For the last 6 quarters there's been this discrepancy between global supply and global demand,"

"Once the [Chinese] government believes they have filled them sufficiently, then that excess inventory and that excess demand for inventory building will lead to extra weight on the market,"

Relative strength confirmed another top in crude oil:

Stocks (red) versus oil: