By Pitguru

For weeks, let us see is there anything new in the energy market. Of course, it will.... Now, you can check it for more detailed.

"The July crude oil contract followed the value of June as crude started out the week at $72.00 before trading all the way down to the support level of $69.00. European debt concerns are still alive in the market. The market held on the $70 handle on Friday, however, as the stock market rose over 120 points in the DOW to close out the week. Crude rose on the Sunday night trade as a U.S. report today is expected to show sales of previously owned homes probably climbed in April. Purchases increased 5.6 percent to a 5.65 million annual rate. (1) The market wants to find a bottom in this $68-$70 level, and I am looking to start to get into some OTM calls here to take advantage of this beaten down market. The WTI spreads weakened quite a bit in the front as July/Aug trades at -165. I believe you may see some short covering to start the week, but I still believe in selling these spreads above the $1.25 level as there is just too much supply in Cushing to keep this market below -100. Look for $68-$69 to be a floor of the market this week with crude trying to break $72.50 on the upside in the July contract. The USD lost ground last week and now it is a matter of the bulls vs. bears at the $1.25 middle level. Bulls want this to go to $1.30 while shorts want it to go to $1.20. It will be interesting to see how this plays out this week.

Natural Gas had a bad inventory report and got knocked back down to $3.90. I am looking at picking up Natty on what I believe to be the cheap this week as the range seems to be from $3.90 to $4.30".