Markets turn early end higher

Posted by Mark Pszeniczny on Feb 8, 2011 10:07:00 PM

I have mentioned often that for many technical analysts the number “3” is significant. After three down days in the Heat pit, the notion of a downward trend was about to pick up some steam. Early this morning HEAT was down over .02 and RBOB was off over .03. With the Egyptian situation cooling off and news of a rate hike in China overnight, there were many taking profits and thus putting pressure on commodities. That all changed as RBOB roared higher with reports of yet another refiner issue at Valero’s massive Port Arthur facility. Refinery problems have been plentiful over the last several days which appear to be supporting gasoline numbers. With Inventories expected to show draws in distillates and builds in Crude and gasolines, a late day sell off cut away a good chunk of the earlier gains. Crude was able to finish negative to $86.94, down .54. RBOB jumped .0437 to $2.4942 and HEAT rose .0257 to $2.7318. To digress to the number 3, notice below that the last time we saw three consecutive down days was mid NOV. That was immediately followed by a 20 cent rise in values over the next fifteen days. With the short term forecast calling for nightly single digits across the region, the possibility exists for a short term run north of $2.80.

Topics: The Market

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