Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Comparing S&P to Crude Oil Illustrates Market Weakness


Comparing S&P to Crude Oil Illustrates Market Weakness
By Mike Paulenoff, www.MPTrader.com

Our big picture view of the S&P 500 compared (or contrasted) to the price action of crude oil concludes that we need to get long the UltraShort S&P 500 ProShares ETF (AMEX: SDS), or short the SPY, at some point in the hours directly ahead. If the weakness in the S&P 500 between 2000 and 2002 represented a "natural" correction within the roaring multi-year bull market, rather than a reflection of deteriorating fundamentals (oil prices were well-behaved and in fact declined from $38 to $17bbl), then perhaps the post-October 2007 weakness in the SPX does reflect both a "natural" correction of the prior 5-year advance and a developing and progressing deterioration of the fundamentals (oil prices have climbed from $85 to $140/bbl).

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!