Bullish Money Continues to Bid-Up Prices; Sharply Weaker Dollar

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The macros remain in support with a sharply weaker dollar (-905 basis points) and notably higher equities on the day.  European debt concerns have eased with good bond auctions this week, prompting a sharp rally in the euro.  Overall the energy complex continues to have an upward bias this week, no doubt in reaction to the pipeline closure, higher equities, and sharply weaker dollar which is down another 700 basis points this morning.

Overall the crude market remains extremely bullish as speculative money continues to fly into the nearby contract, flattening the curve which indicates increasing interest in oil today vs. the out-months (from the pipeline issues).  HO continues to lead the market however with the nearby breaching $2.62 this morning having risen over a dime in just the last two sessions alone.  Today we remain overbought and at risk of a substantial downside move, but now into our 4th higher day with gains of better than a $1 in crude each session……….we’re not expecting that weakness to materialize anytime soon with all the aforementioned issues affecting the market.