Bailouts, Anyone?

On March 30, 2012 by TradingDesk

Commodity and US equity markets are slightly higher to start the last trading day of a very strong Q1. Prices are buoyed by a rally in the Euro after the European “firewall” bailout fund was allegedly expanded, which is good because Greece also announced that it would likely need a third bailout.

Markets have popped a bit more in the past few minutes after Personal spending for February increased by .8%, the most in nearly a year, although incomes grew by only .2% failing to meet estimates roughly twice as large.

WTI broke a key technical support area yesterday, which set off a rapid bout of selling across the energy complex and ended with both HO and WTI hitting their lowest levels of the month. RBOB managed to shrug off most of the selling, and remains the strongest technically as we approach the seasonal peaking window for gasoline prices in April/May.

As we head into the second quarter, the main issues that will impact prices have not changed. The world’s central bank policy decisions to manage a challenged financial system such will dictate much of the action in risk assets. Energy fundamentals remain in a stare down between sluggish demand, and fears of supply disruptions in the Middle East.

CLICK HERE for a PDF of this morning’s charts.


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