In
the energy markets, crude oil is up slightly after a big fall
yesterday. After hitting the $94 level, crude has sold off to the low
$90′s, and is now up $.34 to $92.50. Natural Gas has experienced a big
run up this month, and now is taking a breather, and is actually down
$.045 today to $3.92. We believe natural gas will indeed hit and cross
the $4 level before summer.
We
focus more on RBOB gasoline futures today. RBOB completed a classic
seasonal rally in the beginning of this year, and since hitting a high
of $3.30, has sold off almost $.30 in 30 days, hitting a low of $3.02
today. This is our very important pivot level for this market. If RBOB
can stay above $3.02, we believe it can head up to $3.09 resistance. If
RBOB breaks below $3.02 and more sellers enter the market, we look for
our next target of $2.97 to be hit. Speculation that supplies will rise
as refineries complete spring maintenance and increase production is one
potential cause of the recent sell-off.
PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING
COMMODITY FUTURES AND OPTIONS IS SPECULATIVE, INVOLVES RISK OF LOSS, AND
IS NOT SUITABLE FOR ALL INVESTORS.
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