Collective Irrationality Masks Some Logical Behavior: Macro Man

While the headlines may change from week to week, the price action remains oddly familiar. Crude oil prices have gapped higher at the start of Sunday-evening trading every week since the start of the Middle Eastern conflict, with a concomitant negative opening for US equity futures. Since the opening print on March 2, May WTI futures are up some 41%, while June S&Ps are down a whopping 91 basis points at the time of writing. The disparity seems jarring, not least because we’ve already seen that crude move translate into a record jump in gasoline prices. It just goes to ...