Why natural gas isn't rallying

FT Alphaville quoting Stephen Schork on the correlation between crude oil and natural gas:

The correlation co-efficient in May of 2008 was 0.833. In 2009 it’s a negative (0.101). Crude is completely failing to exert upward pressure on gas prices like it did last year.

Crude oil is the favorite of the inflation traders, with a myriad of exchange-traded products offering retail investors a way to place leveraged bets on the fuel. I think natural gas is showing that the current run-up is prices is driven by recovery speculation and inflation expectations, not a real recovery.