Stocks Not Gaining on Commodity Fizzle

Pisani's Third Law of Broadcast Journalism is, "When stock traders talk about something besides the stock market, pay attention to whatever the topic is." Today, it's about commodities, as stock traders are arguing about whether today is the final nail in the coffin of the Great Commodity Rally of 2008, and if it is, why aren't stocks benefiting?

There is ample evidence commodities are fizzling:

- Oil prices: 3-month low

- Nat. Gas 6-month low

- Platinum: 6-month low

- Copper: 6 month low

- Corn: 4 month low

There is ample evidence big energy stocks are fizzling, and I am not talking about stocks with big exposure to the refining business.

I am talking about stocks that have held up well in the past month, including oil and natural gas stocks and oil services stocks like Noble. But look what's happened since they hit their historic highs a month or so ago:
(% from historic highs)

- Cabot Oil down 44%

- Chesapeake Energy down 38.9%

- Noble down 29.8%

Same with the agricultural stocks: after hitting historic highs in June, they have simply collapsed:
(% from historic highs)

- Monsanto down 26%

- Potash down 24%

- Mosaic down 32%

Questions? Comments?