Bad News Equals Positive Movement

Energy: On the week, Crude will finish higher by only $1 failing to make its way back to $105 in June. I had been short with some clients for several weeks and based on the action in Crude and outside markets, I advised clients to lighten up yesterday. A trade above $105 and I will likely exit shorts and reverse. Until then I remain mildly bearish. RBOB stayed in a nickel range for the entirety of the week. I’m waiting for a move and once we get out of the current range, I would expect 15-20 cents in the direction of the breakout. Heating oil will finish higher by almost a nickel but unable to take out the 100 day MA to the upside. This was the leader in the energy complex this week but without the help of Crude, heating oil will likely not appreciate much more than current levels. Natural gas had its first positive week in the last six gaining almost 10%. That seems like a big move but it is all relative being prices are so devalued. As long as the 18 day MA holds on pullbacks trail your stops and remain long. See the full story here →