Wednesday, February 10, 2016

Oil: I May Be Having A Stroke

Following on yesterday's decline the Fed Chair's prepared remarks were released at 8:30 a.m. ET.
WTI seemed to dislike what she was going to say:
Then we see "WTI oil climbs after EIA reports an unexpected fall in crude supplies".
Finally, for reasons known only to the gnomes of NYMEX the exuberance fades, joy is replaced by gloom and oil drops a buck-and-a-half.
Now this is okay by us as we're betting lower but man-o-mandingo, getting there is not half the fun

Folks, these are 3% to 6% moves occurring on an hourly basis. The CBOE Crude Oil Volatility Index (OVX) is over 70-and climbing, compared to a piddly 25.50 on the VIX and I'm having difficulty smiling.
More to come, March WTI curently down 21 cents at $27.73 after trading as high as $29.22.
Which itself was a 6.6% bounce off the low. Oh great, now I'm having trouble typppppppppppppp