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mkarpoff
Posts: 809
Joined: Fri May 30, 2014 4:27 pm

Our stocks

Post by mkarpoff »

It boggles my mind that the mkt and the oil price was so strong today, and yet so many of your faves were down. Makes me wonder if Wall St will ever rotate back in.
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Our stocks

Post by dan_s »

Today's move in the oil price is nice, but investors have seen too many spikes on headlines only to be disappointed with a pullback. Moves like today are short-covering rallies caused by computer trades. Commodity traders set stop-loss on their shorts and one big trade can cause a cascade.

This won't help:

The American Petroleum Institute (API) has estimated a surprise crude oil inventory build of 3.7 million barrels for the week ending Aug 8, compared to analyst expectations of a 2.761-million barrel draw. The inventory build this week compares to last week’s draw of 3.4 million barrels, according to API data. A day later, the EIA contradicted the API report, estimating that there was an inventory build instead--of 2.4 million barrels.

API is probably just correcting last week's error. EIA's report on Wednesday mornings is the more important number.
Dan Steffens
Energy Prospectus Group
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