One way to find the crude Tipping Point
The crude TIPPING POINT defined:
The crude tipping point is the price level that when crossed, will have a negative impact on not only the U.S. economy but perhaps the Global Economy.
Answer – monitor the Dow Transports – as we can see below the Transports seemed Ok with $80 crude last July 2007. Note the recent rally hit a wall at the old top as crude topped $130
The Transports will not tolerate crude over $130 – the tipping point
Bill Carrigan
The crude TIPPING POINT defined:
The crude tipping point is the price level that when crossed, will have a negative impact on not only the U.S. economy but perhaps the Global Economy.
Answer – monitor the Dow Transports – as we can see below the Transports seemed Ok with $80 crude last July 2007. Note the recent rally hit a wall at the old top as crude topped $130
The Transports will not tolerate crude over $130 – the tipping point
Bill Carrigan
Posts
2 comments:
With crude down more than 10% from its peak why has the XEG (TSX) not come down to the same degree, if as you mentioned energy stocks move down before crude?
The ETF XET is a hodge podge of Energy related issuers that doesn't necessarily correlate with crude. So tracking crude by the XET isn’t advised and may even be irrelavent do to all the no crude related “fluff".
Darren
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