Finding outstanding trades utilizing any asset class or strategy
Wednesday, April 13, 2011
Still long VLO
Gasoline futures are in a nice backwardation, which is bullish, and WTI crude is at this point still in a slight contango, which is overall somewhat neutral. Given this, there's no reason to fade the new highs in refining margins. Not bullish on the overall market, but I'm still long VLO w/ market shorts to hedge. It's at 28 as I write this. I originally bought the breakout at 20, as you can go back in my blog to confirm.