After Gains, Futures content to stay range bound

Posted by Mark Pszeniczny on Aug 30, 2010 9:48:00 PM

After three days of solid gains that saw the HEAT chart move from testing support levels to meandering around mid range.  Today was somewhat uneventful even with 3 major stories playing in the minds of traders.  On Friday the FED chairman announced that they would take swift and immediate action to ward off any possible threat of a double dip recession which caused prices to continue to rise on Sunday night.  Additionally, Hurricane Earl, currently east of Cuba, is expected to move of the eastern seaboard and possibly give the Northeast a bath on Friday evening.  This event appears to be having a somewhat bearish reaction on the market as any storm away from the Gulf is a good thing.  Finally, Consumer spending for July came in slightly higher than expected and as a result a good sell off was seen in the pits.  What was lining up for another higher closed swiftly turned negative.  Again the range from 1.95 to 2.25 is intact and we are dead set in the middle of it as we were for most of July.  At the close Crude fell .47 to $74.70, RBOB lost .0138 to $1.9341 and HEAT led the way falling .0191 to $2.0252.  This week is typically a high vacation week with volumes thin, expect changes to be muted in either direction.

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Topics: HEAT, CRUDE, The Market, Hurricane Earl

Futures shrug off DOE’s, end higher

Posted by Mark Pszeniczny on May 26, 2010 8:39:00 PM

In what appears to be an about face to recent trends, the Pits reacted strongly overnight to yesterdays API report that showed Gasoline taking a whopping 3.2mbl hit. That message was contradicted this morning with the official DOE report that showed Crude build by 2.4mbl, Gasoline fall by only 200k bls and distillates draw by 267k barrels. The rather bearish report, when compared to estimates that had Crude only adding 250k barrels, was pushed aside as value seekers jumped on an already fast moving train. So much so that right after the report was released, again this is bearish news, the markets jumped higher. The length that was shed over the last few weeks appears to be burning a whole in the pockets of the funds. Or they could simply see this as buying opportunity as they did in late January. Again with Front month HEAT touching, but not breaking that 100% retracement level, expect to see sideways action until the next round of economic news is released. Many will focus on the Far East and their economic health as well as the tie to the dollar. At the close, Crude vaulted $2.76 to $71.51, RBOB rose .0396 to $1.9704 and HEAT gained .0490 to $1.9207.

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Topics: DOE, HEAT, CRUDE, The Market, API report

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