Nowadays, everything comes down to oil.
At least, that's the way that Boris Schlossberg of BK Asset Management sees it. He says that right now, global markets, currencies and U.S. stocks are all taking cues from the price of crude.
"All of the markets are focused on the price of oil as a sign as whether risk is on or risk is off," Schlossberg said on Tuesday. "If oil starts to rally, that's a signal to the market that demand is coming back. It's as much a game of psychology as economics at this point."
Oil settled up 4 percent Tuesday, while the S&P 500 gained 1.4 percent, led by energy stocks.
Schlossberg said stocks and oil will continue to move in tandem until the price of crude stabilizes. And fortunately for investors, he said oil could see a relief rally on signs that the Organization of the Petroleum Exporting Countries is cooperating with non-OPEC countries to limit supply.
"I got the feeling that Saudi Arabia has decided that this is it, that $30 has got to hold, they just can't have it any lower than that," Schlossberg said in a "Trading Nation" interview. "If they communicate to the market that they're going to contain supply, that'll be enough for a short squeeze."
But Phillip Streible of RJO Futures still sees more pain ahead for oil, thanks to record inventories and dwindling storage space.
"I think oil prices still have a ways to go lower," Streible said Tuesday on CNBC's "Trading Nation." "Once we get the credit crisis coming out of the U.S. shale producers [and] the production levels come down a bit, then I think we are closer to that bottom."