Oil moved with the market's massive mood swing as it tried to determine just where we are in the economic recovery. A weak stock market and a flight to quality helped shore up the dollar and in turn took its toll on the commodities. Across the board we saw metals, grains and petroleum give way as concerns are mounting that perhaps we have priced in too much good news too soon. Even the surprising jump in the Empire State Manufacturing number seemed to be ignored by a marketplace that seemed fixated on running for cover. The index rose to 12.1 from negative 0.6 in July the first positive reading since April 2008, and the highest since November 2007. Manufacturing expansion could be a sign that demand destruction for energy may be bottoming out but with option expiration and a sinking feeling in the stock-market, it was not enough to save the market.
Yet late in the day some positive housing numbers gave the market a boost. The National Association of Home Builders/ Wells FargoMarket Index had a reading of 18 which was its highest since June 2008. First time home buyers credits seem to be a major factor in turning home builders feeling around and that piece of good news helped the market out a bit at the end.
And we seem to have dodged the hurricane bullet. Ana and Claudette have left the National Hurricane Center storm map and Bill looks to be heading away from key oil areas.
A potential bearish development for oil if the market believes it is an AFP story that says that A top Iranian nuclear official said Iran was ready to hold talks with the West on its controversial atomic drive, without preconditions quoting Iranian state television. Negotiations without preconditions is Iran's main stance on the nuclear issue, Iran's envoy to the International Atomic Energy Agency, Ali Asghar Soltanieh, was quoted as saying. Stay tuned!
Are you getting the Fox Business Network? If you are not you are missing out where you can see me every day! Call your cable provider today! Is it time for you to trade? If you are ready call me at 800-935-6487 or email at Pflynn@pfgbest.com. Call for intraday entry and exits! See all the services that PFGBest can offer you. Metals, Forex, managed accounts you name it!
We're short Sept crude from apprx 7150 - lower stop to 7000!
Sell September heating oil 19300 - stop 19700.
Sell September RBOB 20550 - stop 20900.
Sell September natural gas at 470 - stop 480.
The Dan Flynn Corn & Ethanol Report
Rains continue to race across the Corn Belt.
The December Corn is trading at 319 which 2 3/4 cents lower as I write.The range was 325 1/2 to 318. I continue looking to sell any strength.
The Stocks are bouncing back after yesterdays break and the U.S. Dollar is pulling a turnaround Tuesday as well.
The market is geared for Housing Starts and Producer Price Index due out at 7:30 C.S.T.
The September Crude Oil is up as well.
The Energy Sector is following the Dollar and Stocks.
We may have an active hurricane season from what we have seen so far.
Until we have more fundamental news we follow the same path.