Pillar Talk: President Obama tells the world that the key to a bright, sustainable future for the U.S. economy is one with a foundation built upon five pillars. Pillar's such as new rules for Wall Street, investment in education, investment in renewable energy technology, health care and deficit reduction. Of course the way the stock market;acted makes;these pillars seem more like the ancient crumbling type. Maybe he should have used only four pillars or maybe eight but it seems that his five pillars are not enough to stabilize the market that is on unstable ground.
The weak response to the President's speech seemed to sink the oil market that was actually trying to rally after the EIA's short term Energy Outlook. The report;was not quite as bearish as the International Energy Agency report released last week and by default was supportive. The key thing was that the EIA said that in the US liquid fuels consumption in 2009 would fall by only by 430,000 barrels per day or 2.2 percent. That was about half of what was expected based upon the IEA numbers. So the drop was not quite as bad as feared.
Still oil has to come to grips with more signs of rising supply. Once again;oil seems to be defying overwhelming supply and staying strong for other reasons. Today China and the hopes for more growth and stimulus is driving oil. That is despite the fact that the API is reporting another massive increase in crude supply to the tune of an incredible 6.9 million barrels much higher than expected. The API says refiners cut operations by 2.1 percentage points to 79.9% of capacity in the week ended Apr 10. The API says that gas fell 613,000 barrels and distillates fell by 700,000.;
The bottom line is oil seems to want to find excuses to go higher! Buy breaks!;The day trade and option plays are mounting!
Buy May crude oil at 4480 - stop 4330.
Buy May heating oil at 13000 -;stop 12400.
Buy May RBOB at 12000 - stop 17700.
Buy May natural gas at 320 - stop 290.
The Dan Flynn Corn ; Ethanol Report
The May Corn settled at 392 3/4 which was 1 1/2 cents lower.The range was 394 3/4 to 391 1/2. The continued;spring weather pattern is hampering; planting conditions will take a toll on this;Grain Complex. Look for Soyneans to lead the the Corn and Wheat.
On the Energy Front I keep my;negative bias. However, There are certain Bull Forces talking up this Complex.
Weekly Inventories out today.
Mental note toself !
Watch the U.S. Dollar and Stock Market !