Oil Stocks Overvalued

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Here’s an interesting chart of the $XOI oil index divided by the money supply, illustrating the very consistent pattern of this market over a period of decades. As you can see, we rammed against resistance.

Using the Layered Mode feature, I placed the ETF symbol XOP on top of it, and I’d say the odds of energy stocks being much lower a year from now than they are right now is pretty strong.