"Oil Correlated to Dow Jones More Than Ever"

Discussion in 'Commodity Futures' started by jjthejetwilder, Jul 22, 2010.

  1. ERX/ERY are 3x energy (not just oil) ETFs.
     
  2. If you're looking for a decent correlation to oil look at the Refinery Yields.
    http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MGFRYUS3&f=M

    You'll note the trend this year has be edging down, hence the rising prices of oil, even thow the economy is faltering. You should also note what they were running at during the summer of 2008 when price were at an all time high. If we continue to trend towards the 42-43% level, oil will zip right up to 100 bucks+. Throw in some wild eyed speculation, and 125 is reachable. Of course, if it reverses, then short this pig down to 50.
     
  3. HappyJoe

    HappyJoe

    You can find a correlation between the divorce rates in China to the oil markets if you look hard enough. Doesnt really say much.