What Does This Record Correlation In Bonds And Oil Mean For Stocks?

What happened: MarketGauge flagged a record correlation between bonds and oil, with last week's CPI and PPI reports suggesting inflation was hotter than expected while crude prices stayed high. Key numbers: Last week's CPI and PPI reports both indicated hotter than expected inflation. Why it matters: The firm says weakness in SMH suggests more weakness in SMH and the general market, while the move in TLT may suggest a temporary bottom in bonds as earnings season begins. It says the bond market's reaction to falling stocks or rising inflation may be the best indicator for buying dips. Coverage: 4 outlets in 24h

MarketGauge flagged a record correlation between bonds and oil, with last week's CPI and PPI reports suggesting inflation was hotter than expected while crude prices stayed high.

The firm says weakness in SMH suggests more weakness in SMH and the general market, while the move in TLT may suggest a temporary bottom in bonds as earnings season begins. It says the bond market's reaction to falling stocks or rising inflation may be the best indicator for buying dips.