Not much to say in the way of clever commentary with respect to the WTI price action today. The market worry regarding China's too hot economy is driving a flight to safe-haven currencies and treasuries resulting from a collapse in risk appetite for equities and commodities; plus yesterday's bearish API stocks report; plus today's announcement of Obama's intent to take on Wall Street's banks; plus today's EIA weekly report confirming the bearish API report really left traders with only one trade - sell. Support levels were feable at best, seemingly representing short term pauses for the market to reload and then sell off more. In broad terms, 7600 represents last support of any real strength, after which this author sees nothing until 6900. Beyond 6900? There was one commentary this week suggesting a 40-handle is back on the radar; and a few weeks ago another was warning of
south of Mar-09 lows. The Chinese economy could be the event that triggers the long called-for double dip. The stronger the USD, the higher the risk to equities and commodities.
The regional nature of the natgas market was quite apparent today - with the rest of the world falling apart, the Henry Hub market went sideways in a very hohum manner, well entrenched in the choppy range trade of the past few weeks: 580 resistence by 540 support. While the front contract did close up 0.119 on the day, that move was all prior to the stock number coming out this AM. In fact, the day closed only ~0.02 higher than just prior to the EIA release. There was a 0.23 swing in between, but by the end of the day that was all considered noise.
Not much to say in the way of clever commentary with respect to the WTI price action today. The market worry regarding China's too hot economy is driving a flight to safe-haven currencies and treasuries resulting from a collapse in risk appetite for equities and commodities; plus yesterday's bearish API stocks report; plus today's announcement of Obama's intent to take on Wall Street's banks; plus today's EIA weekly report confirming the bearish API report really left traders with only one trade - sell. Support levels were feable at best, seemingly representing short term pauses for the market to reload and then sell off more. In broad terms, 7600 represents last support of any real strength, after which this author sees nothing until 6900. Beyond 6900? There was one commentary this week suggesting a 40-handle is back on the radar; and a few weeks ago another was warning of south of Mar-09 lows. The Chinese economy could be the event that triggers the long called-for double dip. The stronger the USD, the higher the risk to equities and commodities.
The regional nature of the natgas market was quite apparent today - with the rest of the world falling apart, the Henry Hub market went sideways in a very hohum manner, well entrenched in the choppy range trade of the past few weeks: 580 resistence by 540 support. While the front contract did close up 0.119 on the day, that move was all prior to the stock number coming out this AM. In fact, the day closed only ~0.02 higher than just prior to the EIA release. There was a 0.23 swing in between, but by the end of the day that was all considered noise.