Look at the screenshot of headlines we pasted on the top of today’s issue of The Schork Report. Profits for Big Oil are down as demand is at generational lows. However, look at the very first headline, the NYMEX was higher yesterday because “… corporate earnings boost confidence…”
Huh? According to this one article, demand for oil and therefore profits for oil companies are down, but the NYMEX rallied yesterday because Motorola (mobile phone maker) had a smaller than projected loss and Calphalon (cookware) and Paper Mate (writing instruments) had better than expected profits.
Does that make sense? Of course it doesn’t. And, if you are bearish you better be concerned. On Wednesday it took a large, countertrend build in crude oil supplies to pull the market down $3.88 a barrel. One day later it took absolutely nothing to push it right back up.
Stephen Schork is the Editor of, "The Schork Report"and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.