Market Wrap Tuesday

Good Evening,
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OPEC and Pie
                       There’s really no way to sugarcoat what’s happened in the oil space. WTI sold off today, and it sold off hard as news broke early that Saudi Arabia has boosted production in February. The commodity bottomed out at 47.09 a barrel at about ten minutes after 11am this morning. Crude rallied from that point on as the Saudis explained that they had not really cheated on the OPEC deal, they had just added to domestic storage. The explanation was met with a round of good cheer. They seem like a swell bunch of guys, we should probably just take their word for it. Want more good news? API just reported their Tuesday night data showing a draw of 530K barrels for Crude… a draw !!! Another large build had been expected. API also reported a draw on gasoline stocks of 3.88M barrels. Black Gold? You betcha. WTI Crude shot up to 48.46 in after hours trading in response to these numbers. Huzzah !! Enjoy a delicious slice of pie on pi day.
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Knock ’em Down
                       Eleven sectors lined up for a scrimmage this morning. Eleven got carried away on stretchers. Oh the beat-down was ugly, well as ugly as it gets when there’s a fake snowstorm and large numbers of people stay home. Of course the Energy sector was roasted, but if you turn the machines back on, Mortimer ….  On top of that, part the reflation trade deflated a bit. Airlines, Construction, Engineering, and Mining shares all wilted. not Financials though. Banks and Consumer Finance names hung in there nicely despite the suddenly upwardly mobile market for US Treasuries. Yes, Treasuries and the US dollar bill y’all. That’s about all that was up today. Oh, and NKE & DIS (the kid came in long size). That’s why the Dow outperformed the S&P 500 in case you were wondering.
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Trading Levels
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SPX: I gave you 2365 this morning. The actual level turned out to be 2366, which became apparent around lunchtime. That spot performed spectacularly, and did not crack going into the close.
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RUT: This index formed rising top and bottom trend lines starting around 10:30, and stayed in tact all the way into the bell. I had given you 1362, which was the closing price, but not really something you could have traded. Sorry, dudes.
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positions: long DIS equity