Stations Hoard, Naz Continues To Soar

  • April 11, 2001
  • Marc Dupee

Hefty gains in yesterday’s rally in the energies are
being erased as Naz 100 futures extend yesterday’s gains. 

Gains in energy contracts of as much as 7% are being sold
following yesterday’s American Petroleum Report released after the close. 

April unleaded gasoline
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hit contract highs yesterday as traders looked at relatively low capacity
utilization figures at refineries and lower national stockpiles figures,
implying a supply squeeze and possible return to the record retail prices hit
last June at the nation’s pumps. But last night’s API suggested that there are
adequate supplies of crude oil — which stand 3.6% higher than one year ago — as
well as an upturn in capacity utilization rates at refiners (up nearly 2% from
one week ago). With national stockpile figures of gasoline still down 5.7% from
one year ago, the API report implies that gas stations are topping off their
holding tanks (not accounted for in the API) and hoarding gasoline, not wanting
to miss out on the windfall available at the pump in the event prices soar
above $2 again this summer. 

Such a scenario could
result in a cutback in demand from the nation’s retailers, a buildup in
inventories, and a leveling of prices. Traders are selling energies in response.
April crude oil
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right at its Turtle Soup Plus One
Sell trigger. Unleaded gasoline and
heating oil
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Nasdaq 100 futures
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semiconductor sector by influential Salomon Smith
Barney semis analyst, Jonathan Joseph. Many chip stocks are up 20% —
Xilinx
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(now up 8%).

However, bifurcation is occurring in stock index futures
as retailers lead the dive in blue chips.
Dow futures
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a mild reaction move in
T-bonds
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PowerRating), up 7 ticks. 

June dollar index futures
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second day out of their Pullback From
Highs setup, getting a boost from a second day of buying in US tech.

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