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Duarte At Midday
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| Published every Day At 12PM EST |
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United States Oil Fund (AMEX: USO) and Oil Service HOLDRS (AMEX: OIH) Back In Sync
The United States Oil Fund (AMEX: USO) and Oil Service HOLDRS (AMEX: OIH) both
delivered key chart moves on 5-8.
Chart Courtesy of StockCharts.com
Some in the oil patch are predicting a top in the price of crude oil by the end of the year. But right now, momentum seems to be on the side of the bulls.
The energy market is clearly in one of those zones where it can't be stopped, at least not yet. But as anyone who's ever seen a bubble go manic can testify, these things eventually burst. And when they do, it's usually an ugly development.
The Internet bubble was as ugly as we've seen. And the subprime mortgage market is another example of how these things end.
Yet, there is no sign at this point that the oil rally has reached that point, although it seems certain that at some point it will crack.
For now, we continue to look for confirmation from energy stocks. And right now, we're getting it, as OIH is moving in lockstep with USO.
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