Oil Spike Kills Stocks

Crude oil is near $100 per barrel. The markets are getting crushed for the second day in a row. The conclusion is simple to draw. Sharp spikes in oil prices hurt all but oil stocks. While Chevron Corporation CVX is having a monster day, plays like Amazon.com, Inc. AMZN, Potash Corp./Saskatchewan POT and Intel Corporation INTC are all sharply lower. Why does the market hate sharp spikes in oil? Because it kills global demand and hurts the fragile recovery. As oil prices spike, people will drive less, spend less and consume less. This goes for all products. All of a sudden the average American consumer is spending much more to fill their gas tank and heat their home. As more of their income goes to that, less goes to other things. Gareth Soloway InTheMoneyStocks.com