Back from the sun

2 weeks away from the market and nothing has changed. Equities are still bid, forcefully. No bad news seems to be able to take it lower. Perhaps its interesting that a old timer colleague of mine pointed out that it is when the mutual fund managers are finally fully invested that we will see a new low. Sources from Asia are telling me these managers have been buying, not wanting to be the last one on board. Presumably the same as in Europe and certainly on the other side of the atlantic. Well, SFOT is staying clear of the equity space right now as he knows not much of whether financial stocks strength are going to pull the rest up for much longer.



An interesting fact is that he witnessed for the first time the number of ships acting as oil storage for both clean and dirty products around the island he has visited. That spreads in crude and distillates continues to be weak suggests that the need for oil, recovery in economy is not even close to taking place. Flat price do not reflect any real demand at the moment, but SFOT cannot see front line prices go much higher with increasing inventories globally, floating or non floating basis.
SFOT shalls stick with relative value trade that make sense and readers will know he has liked being long Gasoline vs Heat on paper. That past 2 DOE numbers have certainly helped the case and Gasoline is now printing new highs vs Distillates. Perhaps it is wise to take some profit.


Will Arsenal do it tonight, against the odds and take themselves into another champs league final? I have hopes, but they remain only hopes as Man Utd look like odds on favourite. Gunners will have to play the game of their lives. Come on Arsenal!