This cracks me up. I'm not saying the market should drop like a rock because oil has hit 64 bucks. I just think it's hilarious that equities traders practically crapped their pants on every oil uptick last fall and, during this rally, oil is off the radar.
Right now it looks like the price of crude is being manipulated up by the powers that be, mate. Nobody I know thinks oil can sustain this recent increase,... savy? Market knows this price level is temporary
I have a sophisticated system in place that delivers very few signals, but these few are very accurate (>80%). Input is tick data, signals are for a longer timeframe. According to it, the market should reach a mid/long term top now or within the next 2 weeks. As a position trade, I sell rel small size into the rally, add on the way up and a larger portion once it starts to drop off.
Oil has been coiling over the last few weeks, making higher highs and higher lows, probably building a base for a brutal rally. A blowoff over $71 is not out of the question But that's bullish for equities. Why? I don't know, the market seems to think so.
lol! And because the Black Pearl doesn't need oil, Jack Sparrow will be be ideally positioned to seize more loot!
think about it... If someone told you the equities would be where they are with Oil @64 and Gold @541 you would have laughed so hard you would have cr*pped yourself... I'm sitting here like.."wha?"
Yeah right, and that's why oil futures are in contango out through 2007? Incidentally a year and a half ago, crude futures were deeply backwardated. At that point traders really did think that oil price levels were temporary. Does that mean that the stock market wasn't fixated on oil in summer 04? Martin