Crude oil continues to rise along with natural gas.. but the nat gas rise is only part of the equation. The latest COT data is the real reason why crude is going higher. Wow is all I can say to the latest COT data and some of the expert analysis I've seen. Let me put it this way, if you don't know what you're doing, you're liable to make the wrong conclusion that with open interest as high as it is that crude should be headed for a total implosion. There's much more to it than that. It may be too early to call a bottom in the crude market, but things sure are getting interesting.
Stock market at lows of the day. Boeing downgrade is getting some of the blame. Wachovia had downgraded to Market Perform from Outperform saying commercial aircraft order cycle has peaked and that the company's 787 program could experience delays. Pfizer rose pre market, then the real players came in to bid it down by less than 1 percent, but PFE's dip does get the recently strong pharma stock group off to a bad footing this week. By the way, good analysis by the guy who commented in my weekend thread about there not being much bullish conviction about PFE.
50 dma melts today for QQQQ and for stocks like AAPL. It would have been better if I had lapsed into a 3 week coma and just woke up today to be back here at this point again for the market, plus I would have missed this miserable cold/sore throat/stomach virus/screwed up liver enzymes condition. But back to the market, I am now looking for a close below 1414 on S&P cash to spell greater opportunity for the bears. So 99 off the Dow today still keeps us in the range bound neck of the woods. VIX up above 11 today... but let's face it, until VIX can break above its 200 day of 12.95 this is also remains part of the range bound script.
With energy higher today, energy stocks in general are going higher. Ahead of the President's state of the union message Tuesday night, ethanol stocks are lighting up. The Preisdent is likely to call for more use of cleaner burning fuels. What we really need is an energy Manhattan Project to come up with a real alternative to fossil fuels, but we sure won't be getting that from Mr. Big Oil President and never mind that it still takes about 2x the amount of energy to produce corn based ethanol vs the energy the ethanol yields - that's what I mean by a scam. And be that as it may, the ethanol scammers, err.. the ethanol company shares are on the rise today... names like ADM, PEIX, AVR. What's good for ethanol is also good for grains too. But I'll be honest, I'm long in this space (always smart to chase the scammers who are getting our tax dollars), for now and perhaps longer if the government pours more money into CELLULOSIC ethanol research.