Wednesday, October 8, 2008

Weak Crude Price Additional Sign Economy Is Slowing

As seen in the chart above Crude Oil (green chart line) has fallen aggressively in the last several months.  Normally this would be a positive for stocks.  However as also seen in the S&P 500 (red chart line) has actually fallen as Crude has fallen.  This is a direct sign that Crude's weakness is more a sign that global demand for crude is waning and its falling, while ultimately a stimulous, is presently a warning sign and not a positive for stocks.



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