NYMEX Stays Range Bound with Strong Pull Back

Most pundits have been warning of upside breakout potential with this market for the last several sessions. When you really look at HO for the last four months, the defined range of 2.95 to 3.05 has held, with conviction. As much as I try to disprove the techies with fundamental basics, I am batting roughly .146 since October. That's a slump!

Although, we must point that todays selling seemed to be a reaction to China data reporting that runaway inflation is imminent. The news should have sent futures higher but those trying to avoid risk proceeded to sell off. Additionally, the Saudi Group has acknowledged lower production rates, signaling to the investors that demand may be waning in the weeks to come.

This weeks massive builds in products weighed heavy today in the minds of traders as many had to decide to be long or short with it almost 40 degrees in mid January. At the close, Crude fell .26 to $93.56, HO lost .0458 to $3.0085 and RBOB slipped .0538 to $2.7395

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