Idea is to Pull in Buyersinto the market by keeping oil above $100. The market already rallied 2000 points based on anticipation of a Euro Bailout - but situation in Europe is getting worse. The US super committee has a deadline of next Wed to iron out a deficit cutting plan. Fed speakers are propping the market this week keeping the ducks in line for options week.
The question everyone should be asking IMO is: has the European banks deleveraged yet? If not they are just ramming the markets higher so they can begin deleveraging. Oil at $106 is the next target. When I see oil going higher and GM and F going lower - this is really not a good sign. Strength in the US market versus the rest of the world is not a good sign either. If the USD begins another leg down here and the Euro jumps up then one can expect hyperinflation to begin. I am not a believer in hyperinflation - but the batshit crazy bankers may try to engineer this for 1 year or so to cover up the massive losses in the banking system. Howerver If the USD has reached a bottom - stocks are going no where for 3 years. This is essentially the call here - has the US Dollar bottomed? Whatever happens the next 2 years depends on this.