So our follow through was going fine until oil spoiled the party for the bulls.
I left to get some lunch and to pick up a few “tings mon” and I come back to find oil up $4+…
My guess is this is just a temporary short covering rally and a chance to shake the tree before tomorrows GDP report.
As well we have some gibberish Iran attack talks. This gives momo’ traders more of an opportunity to go short once again. Overall we are still net short.
Just because gasoline inventories are down coupled with a lighter than expected build in crude does not equate to a $4 oil pop. $122 was a major support level and this type of activity is expected.
Of course I do not have the answers, but I feel this could subside after touching $127 and change which is where August contracts are priced. Both September and October contracts are priced @ $123 and change.
At any rate, I enjoyed marvelous profits in EME this morning and will pick TTEK 2 minutes till the close for a speculative earnings play.
GLT
by GW
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