Not Since Crude Was Half Price
Last night’s weekly API showed that inventories
of crude rose unexpectedly to their highest level since the summer of 1999. June crude oil
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is off 2.66% or .77 to 28.17. The supply side of the equation suggests that
crude could be as much as twice as expensive as recent historical fundamentals
warrant. In the August of 1999 when crude inventories were as high as they are
now, the price of crude was in the $14-a-barrel area.Â
Factory orders came out
during the bond trading session and turned positive from last month by a
surprisingly strong 1.8% (vs.+1.5% expected).
T-bonds
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lows. Tenuous Doji crosses in the June contract’s current intraday pullback-from-highs formation implies uncertainty and that the contract may pull back to
yesterday’s high.Â
From the Implosion-5 List,
natural gas
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lows. Nat gas fell out of a four-month descending triangle pattern below 5.000
and traditional measured-move analysis suggests this contract has a chance to
visit 4.850.Â
Down for its fourth
straight day and trading just off a four-month low, Implosion-5 List
member cocoa
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out of a head-and-shoulders top, down 15 at 961 and trading back near major
support (as well as the neckline and bottom of the triangle) in the 950-60
area.