Futures Continue to Rebound After Early Week Sell Off

Posted by Mark Pszeniczny on Sep 26, 2013 5:00:00 PM

Front month Heat continues to find comfort above the 2.95 level as traders weigh the recent barrage of news.  Earlier in the week, many feared an almost inevitable Government shutdown, but those fears were erased late Wednesday as a House Bill passed that would fund activities for the next several weeks.  While Inventories were in my opinion somewhat Bearish, the news didn't take so well yesterday and pushed futures up slightly ahead of today's report that showed the US economic growth rate fell in line with expectations with an increase of 2.5%.  Additionally, new applications for unemployment benefits fell by roughly 5000 to 305,000.  The Bullish overtures of a growing economy almost always will spur a rise in Commodity futures.  The Syrian problem continues to drag on in a political stalemate as Russia successfully blocked a UN resolution which would have authorized military strikes.    While news may be what most are pointing to as the driver, one must give the technical analyst his due.  The Failure of front month HO to settle below the 2.95 mark has spurred buying over  the last two sessions.  This level continues to be a huge support area.  At the Close, Crude gained .37 to $103.03, RBOB added .0321 to $2.7050 and HO settles up .0306 to $3.0037

RBOB Close
                      CLOSE     CHANGE            
OCT   2.7050        +.0321
NOV   2.6887        +.0318
DEC   2.6647        +.0286
JAN    2.6557       +.0276
FEB     2.6583      + .0272
              MAR    2.6675      +.0269                 
HEAT Close
      CLOSE            CHANGE
OCT  3.0037        +.0306
NOV   2.9993      +.0280
    DEC     2.9930    +.0272     
JAN     2.9885     +.0265
FEB    2.9824    +.0251
MAR  2.9689     +.0234


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Topics: unemployment benefits fall, Futures, government shutdown, Syria

Futures end month on soft note

Posted by Mark Pszeniczny on May 28, 2010 9:09:00 PM

Thursdays buying frenzy continued into this morning session as early morning markets were up over 3 cents. A variety of news items led to the jump yesterday most importantly was the announcement of a “busy” hurricane season and the President declaring a 6 month halt on offshore drilling so the current process can be evaluated. While since 2004, every hurricane season has been forecasted as busy, that wolves cry has begun to fall on deaf ears. The true reason for Thursday looks to be more of traders adding length ahead of the long weekend before getting out of Dodge. As we said the overnight jumped on the momentum and continued as the GDP reported 3% growth and unemployment benefits fell by roughly 14k last week. But in true NYMEX fashion, rather than shooting higher, the markets reversed around noontime and actually traded negative, losing over 3 cents in value. The seesaw action looks to continue as we bounce between the 1.90 and 2.00 range for HEAT. The tension mounts as we wait and see if the length gets peeled off on Tuesday. At the close, JULY RBOB went off down .0088 to $2.0266, JULY HEAT lost .0052 to $2.0045 and CRUDE lost .58 to $7397.

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Topics: moratorium on offshore drilling, unemployment benefits fall, GDP up, The Market, NYMEX

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