Futures continue to baffle street

Posted by Mark Pszeniczny on Apr 28, 2010 8:13:00 PM

What’s up is down, what’s white is black, cats sleeping with dogs.. Whats next? Big Papi hitting home runs! The market continues to perplex even the most astute observer. Today for instance, with Inventories showing large builds in distillates and Crude and modest draw in gasolines (again all in PADD2), one would have expected to see large drops across the board after yesterdays fear sale on Greece defaulting on loans. But no, instead it was snowing in Danvers in late April and Crude finished positive 78 cents closing at $83.22. RBOB added .0059 to $2.3327 and HEAT slipped marginally to $2.2290 losing .0013. Again the 1.9mbl build in Crude, 2.9mbl build in distillates and draw of 1.2mbl in gasolines were only a factor for about an hour when the market immediately sold off and the pits were down almost four cents. As the FED announced they were going to stay the course and keep short term rates close to 0%, investors took it as a buying opportunity and pushed all indexes positive. The rebound today has changed my tune slightly. I was screaming we were in for a correction, now it appears we may be in for some congestion before more defining news points us towards a long term trend.

Topics: The Market

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