As crude rises, a majority of the market’s oil leading stocks are heading in the opposite direction. This is interesting and I really started to take a deeper look this weekend after Howard mentioned this on his “Time to Golf” post:
“Oil stocks are being murdered, despite robust per barrel prices. This tells me, someone wants to raise cash–in a very big way.”
I have owned and followed Petrochina on this blog throughout 2007 and can’t ignore the quick 10% correction it has made over the past couple of weeks.
All of the leading stocks listed below are making the same type of pattern correction as the price of crude continues to increase. It’s very interesting and I agree with Howard that someone big is selling into the strength. Other than that possible observation, I really don’t have much more to say on the subject so I will let the charts do the talking.
What are your thoughts?