Crude just spiked up and the equity indexes followed, just cant keep this rigged marjket down now can we.
Dont forget comments just out from : Dallas Fed President Richard Fisher warned that he advocates more tightening if inflation does not ratchet down, though he sees some "stasis" in inflation at higher levels Treasury prices were mildly lower Tuesday afternoon, pushing yields a bit higher, after a regional Federal Reserve official made harsh remarks on inflation, bringing back to the foregrounds concerns that the Fed will be forced to refrain from a rate cut in coming months. ------------- This is soooooooo bullish for equities imo This market never met a rate hike it didnt like
You must be right this market loves the thought of rate increases, you see it just means the economy is growing like gang busters. Now if the fed governor mentioned rate cuts, well thats good to. You see right now its all good, the good, the bad, the ugly, market loves it all.
Boy big draw down in crude, I bet crude will fall, and the equity market will rally, even though the opposite should occur. All the forces on wall street are supporting equities till year end.
There is no proven inverse correlation between oil price and general equity prices. BTW, what was the oil price in 2003?
free is correct. in the SHORT-TERM (ie last summer), there was an inverse correlation i scalped YM often based on QM and vice versa however... longterm, crude prices are POSITIVELY (not negatively) correlated with equities hth