Crude oil headwinds may sustain upward channel for a whileWith rising tensions in the Middle East and a large crude oil inventory draw yesterday, we're looking likely to stay in an upward parallel channel that formed in the last couple weeks. We may get a pullback the rest of today due to resistance, but tomorrow we should be up again. As always, keep your stops below the channel and move them up each day.
Inventory
DATA VIEW: I/S RATIO UPDATE - GROWTH CONTINUESInventories to Sales Ratio has been moderately ascending recently above its relevant risk-free levels of 1.3 along the relevant trend line.
It means that Inventories have been growing at a higher pace than Sales over the last several months
Savvy traders would be interested in watching this ratio as a potential risk indicator of the US economy.
If the ratio continues to ascend at the current phase, it will tell us that a significant fall in business sales is happening, and/or a large excess of inventories is being accumulated in the US economy – both factors are signs of a broader economic slowdown.
INVENTORY TO SALES RATIO - A RISK INDICATOR TO WATCHInventories to Sales Ratio has been rapidly ascending recently above its usual levels of 1.3. It means that Inventories have been actually growing at a higher pace than Sales over the last several months!
Savvy traders would be interested in watching this ratio as a potential risk indicator of the US economy.
If the ratio continues to ascend at the current phase, it will tell us that a significant fall in business sales is happening, and/or a large excess of inventories is being accumulated in the US economy – both factors are signs of a broader economic slowdown.