Whatever It Takes

How do you engineer a major drop in oil and gas prices without upsetting the algos?  As we discussed yesterday, you feed them something they like just as much — like a 35% plunge in VIX.

From yesterday’s Update on Oil & Gas:

Is it any surprise that VIX is dipping below its 200 DMA as the market is about to open this morning?

Sometimes oil and gas prices drop because of fundamentals.  Sometimes they drop because central bankers need them to.  With the 10Y still pushing 3%, and the June YoY delta in gas prices pushing 27.5%, something had to give.

For those who haven’t read it recently, this would be a good time to review April’s Oil & Gas, Inflation and Interest Rates: A Delicate Balance or Goal Seeking?

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