Friday, June 29, 2012

Oil Jumps 9% Dashing Dreams of Short Sellers, Normal Folks

 "The market has been all over the place recently."
-Stephen Schork
June 29, 2012

Mr. Schork is one of the best analysts in the business.
WTI was recently changing hands at $84.81 up $7.12 on the day and just in time for the Independence Day holiday.
From Bloomberg:
Oil gained the most in more than three years on optimism that Europe’s debt crisis may be contained after leaders agreed to ease repayment rules for emergency loans to Spanish banks and relax conditions on help for Italy.

Futures rose 9.4 percent, trimming the biggest quarterly decline since the final three months of 2008, as leaders of the 17 euro countries dropped requirements that taxpayers get preferred creditor status on aid to Spain’s banks. Prices also gained because a European Union ban on the purchase, transport, financing and insurance of Iran’s oil starts in July.

“The market is gathering momentum and should end the quarter strongly,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Expectations that the meeting would end in failure had been baked into the market, so the European agreement has been met with relief.”
Oil for August delivery gained $7.27, or 9.4 percent, to $84.96 a barrel on the New York Mercantile Exchange, the biggest one-day rally since March 12, 2009. Prices are down 14 percent this year and dropped 18 percent this quarter....
...Technical Analysis
Prices may rebound to as high as $90 a barrel if they hold above a support level near $75, according to technical analysis from Oil may rise 20 percent from the one-year intraday low of $74.95 touched in October, said Rich Ilczyszyn, chief market strategist and founder of in Chicago....MORE