Stocks are making a big of a comeback and oil is nearly back to unchanged ahead of the EIA weekly report.

There’s some talk of negotiations from Russia but I don’t think that’s the driver. Timiraos didn’t write about 100 bps from the Fed so that probably drove some buying of risk assets. Ultimately though I think this is regular dip buying.

One chart I want to highlight is utilities. This is the XLU ETF of utility stocks. It’s been absolutely crushed in the past month and this certainly looks like capitulation from mom & pop investors. A higher cost of capital is a problem for utilities but this is excessive.

These are supposedly the safest stock out there and are down 22% in the past 23 trading days.