U.S. stocks fell on Monday as a resurgent U.S. dollar took a toll on commodity prices and investors paused to gauge if the outlook for corporate profits justified the market’s recent run to 11-month highs.

Where are we now? Still in the Twilight Zone economy as far as we’re concerned. US stocks ended strongly on Friday. And they’re set to rise again today if Europe’s strong morning performance is anything to go by. Commodities are up too. Nymex crude oil futures are at $74.24 a barrel at writing. Gold is trading at $953.50 an ounce – not far off Friday’s one-week high.

Oil fell below $65 a barrel on Wednesday, curbing a week of gains after data showing an unexpected rise in U.S. crude stocks suggested demand in the world’s top energy consumer was still weak.

Whether it’s heading up or down, the oil market usually asserts itself as the leader of the commodities world.  Having plunged from levels around $130 per barrel this time last year all the way down to the $40s, the market has spent the last couple of months striking to the upside again.

Having etched out new lows a few months ago amid the worldwide financial crisis, many commodity sectors appear to be doing their best impression of planes hovering over a busy airport: In a holding pattern.

Oil fell below $41 a barrel on Thursday, pressured by more gloomy data on the state of the economy in top energy consumer the United States.

Russian gas deal, Gaza ceasefire ease supply concerns… World oil demand expected to fall in 2009… U.S. holiday leads to low trading volumes…

“It’s just crazy to think of oil over $100,” one snowy-haired gentleman said. “It will be interesting to see what happens when it goes to $150″ says Justice Litle.

It is always impolite to ask a lady her age. But the oil bull market is certainly no lady, besides which, we know she is about ten years old.

Money Morning Investment Director Keith Fitz-Gerald – one of the first global financial gurus to predict triple-digit oil prices – has boosted his target price for crude oil from $187 to $225.