Forget European banks for the moment. We know why they're troubled. Check out oil.

StockCharts.com:

It took a huge leg down on Friday, and if you're the type who cares about lines and technicals, it's now well below the 200-day moving average, which screams bear market (and would also seem to scream deflation). Of course, it's been impressively volatile, and was this low right after Scott Brown.

Now on the other hand, investors continue to sing the praises of Palladium, which remains near all-time highs. He's a glowing, pro-Palladium article in Bloomberg. Its big use is catalytic converters for cars. And yet, oil would also seem to benefit from the same trends, so the disparity is a bit odd. Of course, there are supply issues as well, so merely looking at demand is only getting half of the equation.

Yet the disparity is interesting.