Even oil stocks couldn’t dodge the carnage in the broad market today. Oil stocks sold off a bit this morning as oil prices moved lower. But then when oil prices moved higher — buoyed by bullish inventory data – oil stocks didn’t rise with crude. Instead, they were sucked lower as the major indices went into the tank.
Take a look at the IEO, a leading index of oil explorers and producers …
I know this can be disheartening, but try to separate short-term noise from the fundamentals. Investors are spooked by the bear market going on in banks and other non-energy sectors. So, they booked gains where they could find them and went to sit on the sidelines. While I don’t blame them, the longer-term trend for energy stocks should follow energy … and that’s higher.
Related posts:
- Still Bearish on the Oils I’ll be appearing on a Chicago radio station today (1:40-1:47pm EST CBS Radio WBBM Noon Business Hour w/ Sherman and...
- Why Oil Should Go Lower I believe OPEC producers are desperate for cash. This should keep downward pressure on oil prices....
