The market has continued to reverse a longer term trend of oil rising and stocks falling.
For whatever reason, oil prices took it on the chin again today, down more than $3.50/barrel. That makes a price drop of $18 or 14% in the last four days. Prices at the pump should reflect this soon.
While that goes on, Wall Street has continued this relief rally, up 600 points in the last four days.
If I were a betting man, I wouldn't be surprised to see oil continue it's slide. I feel, like most things, it went up too much too fast.
As far as stocks go, that remains to be seen. I feel earnings have not fully reflected the overall slowdown in the economy. This quarters earnings have seen most of the effects of the government stimulous plan.
Next quarter? And beyond? Unless the government is planning on sending out more checks, I have some concerns about future earnings and stock prices.
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