"Uncle_vito" <u...@y...com> wrote in message
news:pNydnRI_-fodMPLVnZ2dnUVZ_jydnZ2d@linkline.com..
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> OK. Seems obvious that the stock market is inversely proportional
> to the cost of oil. This can be seen in the last few weeks where
> all oil did was go up and all the stock averages went down.

It seems that way recently but historically it is not very well
correlated. Oil was going up while the market was going up from 2003
to 2007.

> Well it seems like oil is headed to $200/bbl.

Nobody knows for sure. I personally would expect a decent pull back
before it goes to 200. There aren't long lines at gas stations yet.
But one nasty hurricane could kill that easily.

> So that means if I short the DJI or SPX I should make money,
> correct.

Unknown. I personally wouldn't be shorting the general market right
now. Interest rates are still relatively low and stock yields are
still beating 10 year treas. yields.

> Seems like a sure thing unless the US Gov announces opening up the
> Str Oil Reserve or something like that which would cause a blip in
> the stock averages before they continue their downward spiral and
> oil its upward spiral.

If we have a nasty hurricane, I suspect they will have to open the SPR
spigot or things will really go bonkers. It is probably a good thing
that they did get it almost full.

Fred