ALERT: ECONOMY DISAPPOINTS WITH ONLY 54K NEW JOBS. UNEMPLOYMENT RATE IS AT 9.1%.
 
PETROLEUM MARKET

Crude was under pressure the entire morning in New York yesterday, only to sustain a dramatic recovery to finish higher on the day. Early on, a berarish EIA report convinced participants that the weak economy was weighing on demand. Later though, Moody's said that it may put the US government debt rating on review for a possible downgrade, and it appears more and more likely that a bailout plan for Greece will be extended, both of which weighed on the buck and supported crude oil. More and more price action one day is negated the next over the same ground. Market participants cast about one day trying to track the dollar, the stock market the next and gold on another day hoping to find the best directional cue, so clearly no one is satisfied with prices where they are. A disappointing  54k new jobs and an unemployment rate of 9.1% should speak volumes about future demand.
 
 
TECH TALK

The bear flag off the early May decline is becoming more prominent. However, the succession of higher lows needs to be breached before the market can really break down. Even after the disappointing jobs number, the market has still not broken into new territory. Yesterday's startling recovery shows the market's inherent strength and the unwillingness of participants to sell into momentum. This is where market movements take their life from the new buying and/or selling that constitutes momentum.

 
NATURAL GAS

No surprise that injections were smaller than estimated. We were the closest, and we were off, as well..Immediately afterward, prices jumped to a  four-month spot chart high, extending recent heat related gains. The thinking obviously is that  that gas consumption for power generation is going to increase, particularly with the diminution of nuclear outages. Storage now stands in deficit to not only last year but the five-year average. Still, this robust, early seasonal demand would have to persist, and extend significantly before bulging stockpiles are pressed. Despite yesterday's bullish report, buyers had a difficulty maintaining the gains and the market has pared a bit more today.
 

TECH TALK

The break of 4.729 resistance has turned the bias to the upside. Still, further gains will be harder to come by. A settlement above 4.879 will be required. Conversely, a settlement that falls below 4.587 will turn the bias negative again and target 3.731. Below that mark 3.255 looms.

source: KilduffReport.Com