The “Great Oil Divergence of 2016” Could Be Near

by Greg Guenthner
Daily Reckoning

Oil jumped 5% yesterday. Stocks also rallied.

The tail’s wagging the dog again. No matter how hard the market’s tried to escape, stocks have been anchored to oil. A down day for oil has meant a down day for the major averages. And vice versa.

The magnitudes of their fluctuations haven’t matched up. But directionally, stocks and oil have been joined at the hip this year.

But this relationship might be coming to an abrupt end. Today we’ll explore what might happen when oil and stocks say their long goodbyes—and how it could affect your trades.

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