Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
On the bad news front, oil is getting crushed today to the tune of -4.1%. Why bad news? A few reasons: (1) oil prices up are seen as ‘risk on’ and (2) oil prices up are seen as a sign economies are strong or at least hanging in there. Obviously the inverse of the 2 are not positive.
On the good news front, as long as the refiners are kind enough to pass along the price reduction, you should see a nice reduction in gas prices. Remember not 45 days ago we were talking about the highest prices for February/March on record, which could/would lead to $4.50+ type of gas for the summer driving season. Well in a rare occurrence we might be getting lower prices on Memorial Day than in February … although I’m sure they’ll jack it up 20 cents right before the last week of May.
This chart doesn’t show today’s prices but we are in the mid $98s after dropping as low as upper $97s earlier. That’s the lowest since early February.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
