evening wrap
market vibes
October 15 … )
"Vote yourself a farm and horses" Abraham Lincoln 1860
The risky reach of the middle east paid a visit to the Nasdaq today. For the first hour of the NY session, nascent rallies in Asia and London implied another dull day. But when stocks opened with an abrupt dip, a trend day lower unfolded on the highest volume in 8 sessions. Apparently, Biden administration officials are considering a cap on sales of AI chips to United Arab Emirates, Saudi Arabia and others (Iran of course) thought to pose a threat to national security. The tone was orderly. Twap buyers entered the indexes around 3:30 and stabilized prices at the bell. The lows in NDX futures took out the CPI lows from last Thursday.
Oil and products opened lower liquidating length from last night’s news. The crude curve front to back is choppy and soft. For instance, Dec Red Dec (chart below) traded from 1.05 to 5.36 last week and fell to 2.12 today, probably a .5 delta with flat prices.
Gasoline cracks are steady. The Dec Rbob to Heat spread tells the story…
Spot heat cracks are still very weak. Meaning distillate demand is still very weak.
Stats tomorrow. Inventories of distillates are falling but better than ample, imo.
In other markets
