Gasoline has led this move down, and now that July Rbob contract is well below the £2 mark, that appears to be strong resistance again. The way that gasoline cracks in July 2009 collapsed suggests a lot of spec lengths are taking off position, possible ahead of FOMC. While the correlation between gasoline cracks and FOMC decision is probably not very high, if indeed this pullback is due to risk unwind, then perhaps the other more obvious risky assets has got another leg down, and very soon.
The double top formation in continuos CL1 is taking place now, and if the expiry today in CLN9 turns out to be ugly, then perhaps a test of $65 will be in place very shortly. Being long gamma will pay off this week.
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