Futures Tumble as length is shed with Jobs Data

Posted by Mark Pszeniczny on May 5, 2011 3:28:00 PM

As the saying goes " we buy in fear and sell in greed", today appears to be the perfect example of that old one.  Coming off the first three day sell off in over six months, the NYMEX was poised for a correction.  A new term put to the days action in the pits, a "flash crash" .  With all three major pits teetering on key support levels at the open, the technical sell off ensued as new unemployment figures were released that showed claims up by roughly 43k more than most estimates.  That, coupled with yesterdays slightly bearish inventory numbers, many sought to exit positions put on several weeks ago.  Again, it appears that we did find the event that would cause a correction, the key now is how much length is left and where will Bulls find a buying opportunity.  The last point to be made for a continued sell off will be to determine how demand will stand up with retail gasoline breaking $4.00 a gallon across most of the country.  From all indications, or today at least, demand destruction is weighing heavily on the minds of investors.  At the Close, Crude tumbled $9.40 to settle below $100 for the first time in weeks at $99.80.  RBOB lost a staggering .2271 to close at $3.0954 and HEAT led the charge with a whopping loss of .2561 to $2.8869. 

 
Daily Heating Oil Chart
heat chart
RBOB CLOSE
                 CLOSE       CHANGE 
  
JUN    30954       -.2271
JUL    30228       -.2352
AUG    29686        -.2391
SEP    29256       -.2403
OCT     27624       -.2410
NOV    27244      -.2409
HEAT CLOSE
          CLOSE    CHANGE
JUN    28869      -.2561
JUL    29020      -.2561
AUG    29169      -.2564
SEP     29345      -.2562
OCT    29513       -.2558
NOV   29676       -.2557

 

The information contained in this report has been taken from trade and statistical services and sources believed to be reliable. Dennis K. Burke, Inc. makes no representations or warranties with respect to the content of such news, including, without limitation, its accuracy and completeness. This bulletin is provided for informational purposes only, and is not intended as a recommendation to buy or sell commodities.

Topics: Jobless claims rise, CRUDE falls, Flash Crash

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