Thanks for the reply, Fredi. I likely will just sit back and watch. Seems
when something is 'obvious' just the opposite happens.

Also surest way to get the price of oil to drop is for me to short USO.

Sometimes I am tempted to try it with just a few shares. The loss of $5000
or so would be almost worth the entertainment value. Also with the drop in
oil, the rest of my portfolio would go up.

Vito


"FrediFizzx" <f...@h...com> wrote in message
news:6d9s1nF1iqg7U1@mid.individual.net...
> "Uncle_vito" <u...@y...com> wrote in message
> news:pNydnRI_-fodMPLVnZ2dnUVZ_jydnZ2d@linkline.com..
.
>>
>>
>> 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
>