The recent theme of the market has been risk-averse: buying safe-haven gold and treasury and selling high-beta asset stock. This trend is especially pronounced with today's ugly stock market action.

So where is OIL standing in all the mess? Turned out OIL is positively correlated to stock. (see my previous post: http://blog.wenxuecity.com/blogview.php?date=200901&postID=55752). And both fell out from the bed at the same time:  away from the recent consolidation. DOW under 8000 and OIL under 40.

So, before you dive headfirst into OIL, look for clue of bottoming in stock first.