Gold down, bulls still control energy prices

On March 1, 2012 by TradingDesk

Yesterday was a busy day for market moving headlines, with the highlight being FED Chairman Ben Bernanke throwing a wet blanket on financial markets by suggesting that QE3 wasn’t coming in his testimony before congress. Commodity and stock markets sold off sharply, with Silver and Gold making the most dramatic moves, down 7% and 5% respectively.

Energy commodities fared much better, bouncing off technical support levels midday and making a furious rally in the last 10 minutes of trade to make a clear point that bulls aren’t yet ready to give up control of fuel prices.

It’s another busy day for news, with weekly jobless claims unchanged at 351,000, consumer spending for January was unchanged for the 3rd consecutive month, and personal income and savings rates dipped slightly. The Bernank is testifying for a 2nd day as well, which will be watched closely for any sign that free money which has become the oxygen of financial markets since 2009, will be extended.

Today is the first day of trading for the low RVP RBOB contract, so don’t be scared by the 22 cent increase in futures prices. Looking forward, despite a nice selloff this week, we remain just 10-15 cents from our 2011 highs in refined products, and longer term technical studies continue to point higher.

CLICK HERE for a PDF of this morning’s charts

 

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