Dislodge Those Divergences

Just as some men say they only read Playboy for the interviews, for a long time I may have claimed to have read Barron's for the stories -- but I was really only interested in the statistics. Over the years, however, I started reading some of those stories, and I've found Mike Santoli's "Streetwise" to be one of my favorites. Granted, I enjoy his column mostly because he often agrees with my own point of view, but it's also because he often supplies interesting data that I don't necessarily see elsewhere or use in my own work.

One of the best examples of this in recent months was when I warmed up to oil back in June, when it was quite hated. Shortly thereafter Mr. Santoli penned a column showing the spread between the oil stocks and the defensive stocks, arguing that they were quite stretched, and that perhaps oils were a buy while defensives were a sell. I had not thought of looking at that spread, yet it turned out to be a terrific indicator....387 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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