Author: Michael Ferrari, PhD
VP, Applied Technology & Research
Odd for the second week in May, but we are actually looking at minimum US temperatures this week as a guide as a cold front has pushed through over the weekend brought overnight lows across the northeast into the 30’s; thermostats were likely turned up. Overnight activity is also seeing crude oil up for the first time after dropping to a three month low last Friday. Bailout talks are giving the market a positive buzz as some are looking at this as a sign that growth in the industrials will be maintained – we are advising to play the interpretation of the Greek debt crisis cautiously. At the start of the week, however, we do expect some support across the energies. Hedge Funds increased net long positions (oil) last week, and momentum looks to provide support in both oil and natural gas in the short term.
