Hello All,
Surpisingly the healthcare bill passed, and it seems as though the negative speculation was already baked into the cake on Friday. For a fairly low volume day, healthcare stocks gave the market a boost, and the short covering rally pushed most markets higher. Aside from the April Crude contract expiring, I cannot associate the strength in oil to anything fundamental. By initially putting in a new low, technical research has us pressing against upper resistance, and we should have confirmation by morning on whether the strength shall continue into Thursday, or we'll see slight new lows across the board prior to a more significant rally. The conflicting pattern is within the Euro as it did not show as much strength as the outside markets. Could it be a trap? We always have to keep an eye on the weaker sister, as one bad apple can rot the entire basket. We have our weekly API data due tomorrow, and DOE on Wednesday, estimates are for a rise of 1.2 million barrels, continuing to increase our stockpiles. The market seems not to be driven by fundamentals, rather investors chasing profit. With the price of money remaining cheap, black gold will remain supported. We've had an average price of about $75 per barrel since last summer, and I feel this level needs to be tested once more before we're off to new highs.
Let's see what the financial markets will do overnight, and we will probably jump aboard the trend early morning.
Best,
Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
www.ExpoFutures.com
*There is a risk off loss trading futures. Past performance is not indicative of future results.
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