Energy: Crude oil closed above the 100 day MA for the last two sessions as September futures are approaching $96/barrel. With prices at 3 month highs I am OK with the client having light bearish exposure. I would not rule out a trade closer to $98 but I do not see prices able to sustain these levels for much longer. RBOB made a 4 month high with prices within 11 cents of their spring highs. Heating oil has showed resiliency as well filling a gap from early May on the advance of 1.22% today. I didn't suspect the strength in the distillates as it has been the tail wagging the dog in recent weeks. Natural gas resumed its slide getting within pennies of the 50 day MA - a support line that has held since mid-June. I am still not ruling out a trade under $2.60 in September.... Continue to read.
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