NYMEX Surges with Better Than Expected Growth

Posted by Mark Pszeniczny on Apr 2, 2012 4:35:00 PM

You hear us talk about it all the time. Expectations. What do a certain group of people expect to happen or be reported versus what is in fact reality. In a world economy that has taken one hit after another, when "reality" exceeds expectations, it is cause for celebration. In our case, speculation. Todays wild reversal was primarily due to the Purchasing Managers Index, PMI. This benchmark is used by many economist to gauge growth and or contraction. And just like any report, pundits put their spin on what is to be expected. Today showed that the US economy grew at a more robust rate in March than was to be expected, and at a higher rate than February. This caused many who got out of positions last week, to load the back up this today. Even more wild was that the markets were down over .02 early in the session. By the time the closing bell rang, a weeks worth of losses were wiped away with RBOB surging .0741 to $3.3822, HEAT adding .0795 to $3.296 and Crude tacking on $2.21 to $105.23. With a short week on tap due to Good Friday and another set of Job data due out Wednesday, investors were not willing to let the buying opportunity pass. Again, the overall theory being that a growing economy can continue to support higher fuel prices. I tend to believe history on this topic rather than investors.

heat map

RBOB CLOSE
CLOSE CHANGE
 
MAY 33822 +.0741
JUN 33137 +.0644
JUL 32554 +.0607
AUG 32010 +.0619
SEPT 31472 +.0648
OCT 29878 +.0668
HEAT CLOSE
CLOSE CHANGE
MAY 32496 +.0795
JUN 32562 +.0768
JUL 32634 +.0743
AUG 32712 +.0731
SEPT 32781 +.0728
OCT 32835 +.0728

Topics: RBOB, PMI

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