Crude Oil & Interest Rates Keep Crashing
Here's a closer look. Based on how Oil started out the week, it looks like it's attempting to retest those 1998 lows. A 10-handle in Oil is not out of the question:
From the long side, I don't see any reason to mess with this thing unless it's above 20, or those March lows.
Look how Oil compares to interest rates. What sort of disaster are oil and rates pricing in that stocks are still trying to figure out?
One more chart I wanted to show you was an interesting one comparing shares of Tesla to Crude Oil. Charts simply don't get cleaner than this:
Look at the base, the breakout, the consolidation and then the parabolic rise. Classic.
Anyway, the way I see it, Crude Oil can keep crashing, Rates can continue to collapse, and US Small-cap stocks can still rise in that environment. Of course. That's just not the bet that we're making.
JC
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