04/20/2020 Live Update

[Junior Buffett]

Cobra, what is your view on Oil? UCO? It is once in a life time like event in Oil market..Do you have any suggestion on how to play this market? Thanks

[f-stop]

The barrel that holds the oil is worth more than the product...

[Heck]

May CL.1 hit a penny

[Cobra]

Measured move down?

[1der]

May CL.1 hit a penny

May QM now unavailable or locked, JUNE pricing and USO starting to slide. Not Good.

[Heck]

And here it is

West Texas Intermediate crude for May delivery tanked more than 130% to trade at negative $6.75 per barrel.

Equities accelerating DOWN

[Heck]

May CL.1 hit a penny

May QM now unavailable or locked, JUNE pricing and USO starting to slide. Not Good.

Debt Default Deflation rearing its head

[Heck]

Fore
Look out below

[Al_Dente]

Measured move down?

spot on, thanks boss

[Heck]

CL.1 May Fut -40.32 price

Made history today

[Al_Dente]

For the first time in 15 days, the options traders (1/VIX) poked into the red (bear spy, bottom panel)
It did that before (3/27) then recovered the very next day

[brokebybernacke2]

Fore
Look out below

when? world is ending and prices keep going up. scratching head..not really

[Cobra]

May test day low (already did while I was typing) which might not hold.

[Al_Dente]

FINAL HOUR

[Cobra]

Breakdown as expected. Now let's see if it's a typical breakdown then sharp reversal up which is the bull's only hope now.

[Al_Dente]

Senate Says "No Deal"
"Vote on relief bill pushed to Tuesday"

[Heck]

$SPX New Lows

[Al_Dente]

2:42 pm: Here’s why this oil price crash isn’t as bad as it seems
The oil futures contract that fell more than 100% on Monday is for May delivery, and it expires on Tuesday.
With the coronavirus pandemic leading to unprecedented demand loss, and with storage tanks quickly filling up, there is no demand for this oil contract expiring Tuesday. That’s why it turned negative, meaning producers would pay to get this oil off their hands because there is no one that needs that oil this week with the country shutdown. Futures contracts trade by the month. The contract for June delivery traded 16% lower at $21.04 per barrel. So after that contract expires on Tuesday, oil will be back above $20. - Stevens

[1der]

2:42 pm: Here’s why this oil price crash isn’t as bad as it seems
The oil futures contract that fell more than 100% on Monday is for May delivery, and it expires on Tuesday.
With the coronavirus pandemic leading to unprecedented demand loss, and with storage tanks quickly filling up, there is no demand for this oil contract expiring Tuesday. That’s why it turned negative, meaning producers would pay to get this oil off their hands because there is no one that needs that oil this week with the country shutdown. Futures contracts trade by the month. The contract for June delivery traded 16% lower at $21.04 per barrel. So after that contract expires on Tuesday, oil will be back above $20. - Stevens

Or, June delivery futures start to slide because there is still not enough storage in 30 days and demand has not picked up enough to draw down the excess May inventories (plus the anticipated June deliveries )and we get to do this all over again.

[Cobra]

Members only update at 3:45 pm
http://www.cobrasmarketview.com/2020/04 ... ay-update/