Edward Meir
Edward Meir
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.
fact general given maintain markets respect view
We maintain our general view that these markets have to be given some respect given the fact that we still have sizeable outages going into Q4.
backdrop change economic global including numbers remains signs suggesting
There are still no signs of a downturn in global economic activity, suggesting that the fundamental backdrop for most commodities, including crude, remains favorable. We'll see if this week's U.S. numbers change any of that.
bit overdone taking upside
I think we were probably a bit overdone on the upside and there's some profit-taking taking place today.
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.
There is some understandable nervousness about today's copper-stock increase.
cannot further gains inventory later numbers rule
We cannot rule out further gains later in the week, particularly if (DOE) inventory numbers surprise.
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.
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 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.
almost follow followed impact limited price sharp spike strike
The strike in Nigeria, if it does come to pass, will have a limited price impact and could very well follow June's pattern, where a sharp spike after the strike announcement was followed almost immediately by sizeable selling,
barrels center command front iranian issue market million oil per prospect
As long as the prospect of sanctioning 4 million barrels per day of Iranian oil is out there, the Iranian situation, in our view, will be the front and center issue that will command market attention.
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.
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.