Below compares the price of Crude Oil and the NYSE Index over the past decade. Even though both of these assets don’t always correlate, sometimes they do, for good periods of time. Over the past couple of years, they have correlated and several lows and highs have taken place at the same time. If correlations are to continue, what Crude does next, could be very important for the bull market in stocks.
Just as we warned yesterday following the EIA inventory and production data release, the exuberance over the crude draw was misplaced (due to the surge in product builds and almost unprecedented refining activity along with continued resurgent oil production). Saudi imports continue to show no sign of the OPEC cuts and asone anylst noted "the market looks like it wants to turn lower, maybe it has run out patience waiting for OPEC"
Trump 100, Margin Debt Stock Bubble and Gold
Authored by Michael Snyder via The Economic Colapse blog,
There was no surprise in the ECB's monetary policy statement released moments ago, in which the central bank kept all three of its rates unchanged as expected, however it did confirm that QE is intended to to run "until the end of December 2017, or beyond, if necessary," and in a surprise addition added that "if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration."