Jun

3

It has been very trying two-year ordeal for investors in this space. Prompt futures have been sliding with unprecedented consistency, ever since their top price of $13.69 traded July 1, 2008. Every month since, as each new futures contract came on board, it has been one-way street for it to drop, drop, drop…all the way to $2.40 by September 1, 2009! July 2010 contract, however, traded below $4.00 for only a few lucky deals and basically quintuple-bottomed near $4. No major change in fundamentals is on the horizon, with record supplies and gargantuan inventories still dominating industry research reports.

However, traders are starting to pick up on the "active hurricane season" theme and looking to capitalize on surprise short-covering squeeze this summer. Surprise just because same failed to materialize during financial troubles of 2008, and a huge disappointment of 2009. Should we put money this year on "whatever didn't work last year"?

Craig Mee coments:

Got to love watching a good extended contraction and being ready to pounce… and reload if necessary. 


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