USO / XLF Ratio (at VIX And More)

Posted by Bull Bear Trader | 7/23/2008 02:10:00 PM | , , , | 2 comments »

For those who read the crude oil / financials post and are interested in reading more about the current relationship between the USO (crude oil) and the XLF (financials), check out these two posts (first, second) at the VIX And More blog, or at greenfaucet. Bill Luby has created what he calls a "headwind index" that looks at the ratio between the XLF and USO. Interesting stuff.

2 comments

  1. Bill Luby // July 23, 2008 at 3:21 PM

    Thanks for the mention, David, I appreciate it.

    I thought we might see some of the momentum die today, but the trend continues. If there is no reversal tomorrow, I'd say the odds of the long financials and short energy trade continuing to do well in the weeks ahead should go up dramatically.

    Cheers,

    -Bill

  2. Bull Bear Trader // July 23, 2008 at 3:31 PM

    No problem. Good stuff. I have been thinking about recent moves between the two for a few weeks, but noticed you beat me to it with your ratio. :-) I am just not sure how long the trade will continue, at least from the financial side.