Crude Has Been 'Crude' to the Specs

It wasn't that long ago that the U.S. stock market and the price of WTI crude oil were almost perfectly positively correlated. I recall times at which the correlation was running about 90% (meaning that on any particular day crude oil settled lower, the S&P 500 would also settle lower and vice versa).

That correlation has quietly dissolved, however. When measured over the last 180 trading days, or roughly nine months of market action, the price of oil and the S&P 500 (in the futures market anyway) settled in the same direction a mere 17% of the time. For most traders, a correlation this small is considered to be no correlation at all. Thus, while oil has slid from $54 to $44 in a few short weeks, the equity market hasn't seemed to notice....564 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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