Markets Trading Quietly

On March 21, 2013 by TradingDesk

Yesterday’s DOE report showed continuing weakness in the US supply & demand equation, as refinery runs picked up as plants come out of a busy maintenance period. The report wiped out early-morning gains in both RBOB and HO, and for a while it appeared that the week’s sell-off might pick up steam. Prices rebounded in the afternoon however, and the FED’s statement caused a surge in stock indices and energy values, with RBOB outperforming and nearly erasing Tuesday’s 8 cent losses. Markets are trading quietly this morning, appearing to wait and see who will win a tug of war between shrinking European markets (No, they haven’t figured out what to do with Cyprus yet) and US markets which are once again approaching record highs.

Energy futures are back in limbo, RBOB will need to break back above its trend-line at $3.1350 if a true spring rally is to take place. HO needs to get the April contract above $2.90 and the ULSD-Spec May contract back over $3 to prevent further selling. Charts are mixed, with slight favor given to more selling.

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