When our market relentlessly trends, there tends to be one overwhelming driving force behind the rally or sell-off. The present move up is unequivocally led by scarce supply and actual inventory decline.
Trying to run a carefree bullish or bearish attitude in oil is the stuff of halcyon dreams. Much of yesterday’s performance had the feel of a corrective process with Heating Oil and Gasoil testing down to some very important technical levels.
The stronger and longer the trend, the bigger the temptation to realize profit. Almost any excuse will do. It does not even have to be an actual development; a rumor or gossip will be sufficient to shepherd the herd towards the exit.
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