Bulls in driver seat after third up day of specultative buying

Posted by Mark Pszeniczny on Jul 9, 2010 9:44:00 PM

With the short trading week coming to a close, and what is typically a slow week, was anything but. Inventories showed a large draw in Crude but slight builds in the products, but more importantly was the stock market breaking the 10,000 mark thus implying renewed economic hope. Renewed hope signals increase fuel demand which brings about higher prices. HEAT appears to be still locked in the 1.90 to 2.05 range, and even with the third session in a row of gains, most appear to be skeptical that these levels hold for any length of time. The jump of 14 cents over the last three days appears to be pushed most by speculative investors buying the levels seen last touched back in late May after that dramatic two week fall. (see chart below) Buy on the dips as the old saying goes, and speculative buying lead to speculative selling. At the close, Crude added .34 to $75.77, RBOB gained .0258 to $2.0511 and HEAT rose .0266 to $2.0053. Look for more volatility next week as many return from vacations to find a slightly overpriced market. As a side note, Dennis K Burke is pleased to announce the launch of our newly designed web site. Please visit us at www.burkeoil.com !

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Topics: The Market, Crude draws, Speculative Buying

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