Gasoline: RBCL Holds Steady With Resistance At 1300, 1366, 1425

We’re staying weak based on RSI, but despite the volatile moves, we’re still direc-tionless. That leaves today with another chance at direction. To be fair though, we went through this seasonal move last year at this time and have until Nov before we return to a rally. We’re going back to find support here with 9666, 9523 and 9478 the best we can expect. Finding a way back to the upside, we’ll look for resistance at 9852, 9959 and 10030. The front spread dumped as well as it should have without much effort to test higher lately. We can expect some correction here to –19. Flat price is going to start higher early and hold to the close.

Gasoline
We’ve moving on to RBZ3. RB is trying to fight the good fight. We’re looking at sup-port to come in and hold 25936, 25735, 25588. The upside will have resistance up to 26300, 26424 and 26618. The front spread looking slightly stronger here. We’re look-ing at support to hold -42, -57. Resistance –26, –10, +05. RBCL holds steady with resistance at 1300, 1366, 1425. Support back down to 1237, 1183.

Trends are only for the affected
Oh this is almost as boring as waiting for trick or treat kids in NYC. We’d like for direction to come knock-ing, but nothing on this 10min chart. We’re holding an obvious range of 9600 to 9700 and it just doesn’t get more plain vanilla than that. We could hope for better on the 60min chart, but that looks about the same with the next level of commitment to direction above 9780. Thanks for coming in, but it’s better to be going out.

Fundy you should mention
Listen, I’m all about “tough love”. I like the idea of raising rates in this economy because I believed in Greenspan. Did he raise rates in 1992 as we were just getting out of a recession and send us into an-other stumble? Sure, but you know what, he sent the economy on a tear that was unprecedented in eco-nomic history. We hit modern day highs in the stock market and modern day lows in unemployment. Sometimes you have to kick the mule to get it moving. We get ISM Mfg Index (55.0) at 10:00am EST and Auto Sales (domestic 11.9M, total 15.5M) through the day.

Sorry, I am just physically attracted
I’m not going to pretend there’s plenty to talk about here in the cash markets. There’s little excitement and the futures expiration for products went off without much fanfare. Well that’s the market in general these days anyway. We think that there’s plenty of reason to see these markets clean up a little here, but we’re looking at some of the highest crude stocks in inventory for this time of the year (696M). There’s a lot of work going on with the refineries in PADD3 and it’s our guess that they are reconfiguring the system to take on more light sweet. It would make a lot of sense considering the move with the pipeline expan-sions, but time will tell.

Techies, some Trekkies

200 Day MA 9873

100 Day MA 10339

13 Day MA 9839

8 Day MA 9728

14 Day RSI 32.83

Spread now; Roll later

Everything is expensive

Key support: -19, -26, -32

Key Rests: +06, +11, +18

Courtesy: Oil Outlooks and Opinions