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Oil is getting hammered today. The United States Oil Fund LP (NYSE:USO) is trading at $38.03, -1.02 (-2.61%). While oil is down sharply, Chevron Corporation (NYSE:CVX) is trading just slightly lower while Exxon Mobil Corporation (NYSE:XOM) is trading at $74.93, +0.38 (+0.51%), solidly higher. Many amateur investors would look at this as a bullish sign for both stocks but I beg to disagree. The beginning of the year always sees new money flowing into the biggest stocks and the best winners. The fact that both these stocks are strong in relation to oil is only due to the fact that new money is looking for a home. This new money is propping both stocks up for the time being. It should subside by tomorrow and if oil continues to be weak, look for further downside action.  Both XOM and CVX are extremely extended on their charts and both due for a pull back as well. Look for a solid pull back on both in the coming weeks. To gain more insight and analysis, direct entries and exits and master education, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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