May 15, 2014

May 16th, 2014

ERCOT Cash – printing $48 bucks on the super peak – whoop! Broke out from the
$20s prints. BUT load isn’t impressive – under 39k – so pricing will be
contained…Temps a creepin’ though. DAM cleared $34.65 and 34.19 on and offpeak.

PJM short term looks bearish as temps fall back into normal – next day Fin
trading $43 bucks vs. $75 bucks bal day…

ERCOT Forwards – Basis day – trading H/N basis on the Cal 15 for $1.70 – pretty
much the highlight on the day. And the Summer 2014 was offered lower than 20
heat rate, UNCHG on most everything else…Sum 14 19.75, Ca1 15 – 12.21 and Cal
16 – 12.19.

PJM Forwards – Bal Year slightly offered better and the backs were steady to
lower in PJM and NiHub – AD Hub slightly up relatively speaking. PJM Cal 15
$54.25 and Cal 16 $52.10

NG – EIA number came in 105 – and posted a down revision to last week’s
injection by 8 Bcf. NG settled up today

CL – lower on the day – according to Dow Jones Energy News, crude basically
followed equities on weak US and Global economic signals (more on this below) and
near record stockpiles of the black gold – YOURS for now.

Economy and Such – OK – welcome to the psychopath world of the “new normal”!!!
Last week – Peaches and Cream, this week the sky is falling and drag Global
Equities with it…YELLEN for help (ha-ha, crackin’ myself up). Janet Yellen
is the new FED president –  Hope the FED does nothing – otherwise it
will prove that the markets, and probably the US economy, can’t broadly survive
without its fix of QE. Not a fan of QE, it’s distorting interest rates and
forcing capital mis-allocation. In my HUMBLE opinion.

Wal-mart’s profit forecasts and slow growth weighed on the markets, as well as
industrial output fell – the ‘ol one two punch…

What happened to bad news is good?? Could we be headed to the old normal?

BITCOIN – $438
NG – $4.469
Crude – $101.56*
SP500 – 1870.85
US 10-Yr – 2.49
Gold – 1296.60

**near market close

Leave a Reply

Your email address will not be published. Required fields are marked *