Edward Meir
Edward Meir
cannot further gains inventory later numbers rule
We cannot rule out further gains later in the week, particularly if (DOE) inventory numbers surprise.
amount cannot current finding growing held hostage investment justify markets money several tight
While fundamentals are tight in several of the metals, they cannot justify current valuations. Markets are, instead, held hostage by the growing amount of investment and speculative money out there that is increasingly finding its way into commodities.
across action case complex gas natural odd session trading
Sometimes one comes across an especially odd trading day when nothing much makes sense. Yesterday's session was a case in point, with the action in the natural gas complex being particularly puzzling.
funds popular rather searching seem
Commodities seem to be a rather popular alternative (to bonds, equities and the dollar) for funds searching for a trend.
either held low major moves people suggest volumes
We think that major moves ... should be held in check, as low volumes suggest that many people are either away, or uninterested in initiating new positions.
buying commercial continued crack gasoline healthy possible supplies
More likely, it was continued nervousness about gasoline supplies and possible commercial buying on the back of healthy crack spreads.
There is some understandable nervousness about today's copper-stock increase.
case enter growth interest markets money rising shows signs slowing steadily vigor
New money may not enter the markets with the same vigor as has been the case in the past, especially if growth in the U.S. shows signs of slowing on the back of steadily rising interest rates.
itself nigerian staying
The Nigerian problem, it seems, is transforming itself from a pesky, on-again, off-again, bottleneck to one with more staying power.
crisis entails given hearing higher involved market markets modest moving nature news nigerian possible potential relatively supply
The Nigerian news would typically not get much of a market hearing given the modest amounts usually involved and the relatively short-lived nature of disruptions. However, given the potential crisis with Iran, markets are moving higher on just about any news that entails a possible supply pinch.
behind hard pinpoint price reasons
It's hard to pinpoint what the reasons behind yesterday's price surge were.
increasing inventory latest markets odds remains seen situations three whether
It remains to be seen whether this latest really will be upstaged by this week's EIA inventory reports. We think not; the markets are grappling with three simultaneous geopolitical hotspots right now, increasing the odds that at least one -- if not all three -- of these situations will override the potentially bearish consequence of an inventory increase.
across anytime bulls heading hills shot
Yesterday's sell-off was a shot across the bow, but we don't think the bulls will be heading for the hills anytime soon.
concluded drama explains head longer markets perhaps prolonged response
The prolonged drama probably explains why markets have not done much of anything in response to the news. Participants have perhaps concluded that things will take a lot longer to come to a head -- if they do at all.