The energy complex was down in all sectors last week as initial jobless claims grew more than expected sending the equity markets lower, Euro lower, and thus the energy sector lower. Crude Oil Prices traded down to $73.30 and has liquidated $9 in the last two weeks as the economy hit some speed bumps recently with some key economic data. WTI spreads are inching higher after liquidating last week which is one good sign of a stabilizing market. I believe another reason to exit short positions and think about developing longs here is that the October Arb is climbing back as well after getting pounded to -120 last week the arb is now trading -50. Gasoline and heating oil looks to stabilize here as well so I believe you will see some profit taking ahead of the GDP number this week as the market heads a bit higher. I think crude will try and reach $76.00 before listening to the GDP number and making a decision next on where to go.
Natural Gas looking weak after the worse than expected inventory report on Thursday as this market trades at $4.08 looking to head to the $4.00 level. I believe in looking to buy this market on the dip as the valuation is much too cheap down at these levels. I would recommend looking to get into some OTM calls as I think this market will try and rally before the GDP number.
The prices of Silver Future may be affected by the prices of Crude Oil in Markets in the next two weeks.
Natural Gas looking weak after the worse than expected inventory report on Thursday as this market trades at $4.08 looking to head to the $4.00 level. I believe in looking to buy this market on the dip as the valuation is much too cheap down at these levels. I would recommend looking to get into some OTM calls as I think this market will try and rally before the GDP number.
The prices of Silver Future may be affected by the prices of Crude Oil in Markets in the next two weeks.
