The long "sideways saga" of crude oil is over. That's the idea behind our chart of the week.
In late 2008, we told readers to load up on crude oil bets almost on the exact day the stuff bottomed around $35 per barrel. Oil was extremely cheap relative to gold back then. On cue, the black stuff rallied 100% in the next six months. But since June, the price of crude has drifted sideways in the mid-$70s.
Our chart below shows that sideways period is over. Crude just "broke out" to a new high around $85 this week.
Most energy analysts see this price as too high given the supply/demand fundamentals. But as we've highlighted with surging financial stocks, copper prices, and restaurant shares, it's obvious the Fed's great reflation program is boosting the price of everything under the sun.
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