Markets plummet early on hit of HVT #1

Posted by Mark Pszeniczny on May 2, 2011 3:41:00 PM

On a day that for most of us was 10 years in the making, the sight of pits being down almost 9 cents  early this morning was almost surreal.  Over the last few months we have talked about "risk" or "violence" premiums built into the market, but today it was all about the "fear" premium that was erased overnight.  However, the Market being what it is, found a way to battle back and even trade higher for much of the session.  Finally finishing lower on the day with Crude falling .41 to $113.52, HEAT losing .0237 to $3.2521 and RBOB lading the charge falling .0505 to $3.3479.  As many talked how the removal of Bin Laden from the scene was a major win and will have impacts in the future of the markets, others began to chat up the power vacuum that may occur inside Al-Quida.  Most Political figures stressed the importance of remaining vigilant in the fight on terror.  Some cities even issued new warnings. All of us can remember life and markets pre 9/11 and in this "New Normal" market, we have always said that there needs to be an event or catalyst to change sentiment and direction.  This is the biggest one we could have had. 

heat chart
RBOB CLOSE
                 CLOSE       CHANGE 
  
JUN    33479       -.0505
JUL    33062       -.0432
AUG    32679        -.0383
SEP    32340       -.0322
OCT     30792       -.0262
NOV    30426        -.0239
HEAT CLOSE
          CLOSE    CHANGE
JUN    32521       -.0237
JUL    32669      -.0246
AUG    32817      -.0257
SEP   32977       -.0259
OCT    33124       -.0259
NOV   33263        -.0262
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Topics: New Normal, Osama Bin Laden killed

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