Crude Rallies on Less Than Anticipated Draw in Inventories, Markets Follow

According to the EIA, crude inventories fell by 1.4 million barrels, which was 1.1 million barrels short of the expectations. On this seemingly negative development, crude rallied. I’m beyond the point in my life where I’d think about this stuff and try to rationalize the moves of the market. Markets do what markets want to do.

They’re rallying now– following crude to the upside. The gains aren’t much to clamor over, or sweat like a fat hog. But they’re enough to the point of driving any short seller insane. Aside from my bearish demeanor, all rooted in facts and emotions, I’d be the first person to tell that stocks are behaving well.

However, as long as yields are diving lower into negative territory, my ark, TLT, shall climb ever so gallantly, north. I view the risk rewards of being long TLT v the overall market, inexorably in favor of the latter.

Today’s big winners are in retail, aka the dead mall.

If I were trading again, I’d just tell you to trade the market you see in front of you, not the one you imagine will develop over the course of time.