It's no surprise that I got my but kicked Wednesday when the market once again roared to records highs, largely due to the fact that Trump didn’t sound insane Tuesday night. Oddly, after his speech, the S&P 500 and Nasdaq pretty much shrugged their shoulders. I guess the lack of insanity had to sink for a few hours, and now equities around the world are at levels never before seen in human history.
Most vexing to me is what energy is doing, because oil is weak -- which is what I want to see, since I have a lot of energy shorts. But energy stocks are VERY strong. Looking at the divergence below, the monster question is -- will oil “catch down” to energy stocks, which have been unusually weak until Wednesday, or will energy stocks continue to “catch up” with oil?
USO Vs. XOP
