Oil vs Wheels (IYT,USO)

Oil vs Wheels (IYT,USO)   It’s the interplay between the following two factors that we’re keeping our eye on these days, the better to apprehend the market’s immediate trajectory: oil and ‘market leaders’.   We’ve discussed this combo before, and how they work together.   The ‘leaders’ are the current sexy tech group, not related to oil directly, being themselves more a gauge of investor sentiment toward equity investing in general.  The transport stocks, too, are leaders; as a group they indicate where equities are likely headed, because shipping arrangements have to be made well in advance when new orders arrive at the factory.   In fact, shipping details and contracts are normally finalized anywhere between one and six months prior to industrial orders actually being produced.  And that advance warning gives us some lead time into understanding market direction over the intermediate term.   That said, the whole ball game gets thrown a curve when oil prices are in flux.  As the sector that’s most reliant on energy inputs, transportation stocks can be thrown into a tizzy when crude futures are trending fast. When they’re stable, of course, the game is a whole lot easier to play.   So…

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