Earlier today, I bought the ultra-bearish-on-crude-oil ETF symbol SCO. A little while later, I assumed it had gotten smacked down hard, since the stock market was so strong, and I was surprised to see it was up about 1% from where I bought it, in spite of the market's overall strength.
I did a comparison of SCO to SPY and saw the interesting relationship these two have had recently. SCO has been channeling nicely between about $12.25 and $16.70 for half a year now. It appears that whenever SCO is at the bottom of its channel, the SPY is at a intermediate peak, and whenever SCO is at the top of its channel, the SPY is at an intermediate low.
