ugly energy charts:
The energy sector ETF has been above its 50dma for most of the bull market, a support line that has repeatedly held. In early May, that line failed. The failed attempt to get above the 50dma in early June indicates that line is now a resistance line.
Since the recession bottom, oil prices and stocks went up together, with the ratio fairly constant. In February, that ratio broke down. Oil prices above about $100 Brent (or $90 WTI) hurt the global economy, and hurt stock prices.
RIG: After staying above its 50dma from August 2010 into early March 2011, it went below that average, failed repeatedly to get above it, then sank below the 200dma, failed repeatedly to get above that average in May, and then headed lower. 50dma just crossed below the 200dma.
FSLR: First Solar has the lowest manufacturing cost, and the best balance sheet, among solar panel producers. Since the recession trough, the stock has gone sideways within a wide range (while the S&P500 has doubled).
disclosure: almost 100% cash; sold my last long stock position in April |
