OK, who knows what about oil? This kind of move is too dramatic to be just technical. Far be it from me to ever want oil to go higher, because gasoline being down is a huge prop to consumer spending.
But the big macro funds want to see oil stabilize, because they are worried that lower oil, that is endlessly lower oil, will cause a credit event or many credit events ¿ there's more than $200 billion in high risk debt out there -- and if they see stabilization they will be far less concerned about stress in the system.
Yes, higher oil is bullish for the moment.
What to do? I think that until we know why it is spiking, we need to sit tight. Could it be because the Saudis have, at last, blinked? Could it be because someone who is short oil is frantically covering?
Anyway, the move's a positive one. And it's creating a rosy hue around the whole market, even toward the companies that least benefit from it -- like the retailers and restaurants.
Amazing, ironic ... and true.