Oil and Stocks
Markets are confusing and the recent positive correlation between stock and oil prices show to me that no one will ever fully understand the mind of the market. The market has come to believe that rising oil prices are a positive sign for stocks. I do not get this thinking. The economic rebound is just beginning and higher gasoline prices could snuff out growth.
Update: The oil/stock correlation broke today. Oil dropped 4% while stocks rose half a percentage point. Don't look now, but natural gas is below $3.50 per mcf again.