If anyone was expecting an update today on why the market dropped so hard and rebounded so far, we’re scratching our heads too.
- We saw some Fed bond buying and thought the purchases were lower, but no change there.
- We heard talk that China is backing out buying crude and products because of a pipeline explosion last night. We can understand the not buying crude as they can’t offload and ship it up the line, they would in turn need to buy more products.
- There’s been fog issues all week in the Houston Ship Channel, but the fog is clearing today. We are hearing that there’s more weather issues like heavy rains and winds keeping ships delayed, but nothing that is going to move prices like this.
- A lot of talk about funds getting burned on WTI/Brent arbs…again. We have to think that they call this “smart money” for a reason and they aren’t getting caught on the wrong side, again.
- Considering the extreme volume, we have to give it up to the algo crowd. They knocked out weak length and probably took home some good profits as everyone followed the move down.
Of course we’re almost back to where we started this whole debacle so let’s shoot for sharply unchanged and get to some serious business. Like holiday grocery shopping.