RBOB YIKEs!!!
2008 SP Analog? Settlements 3/2/2022
The RBOB futures are on fire! We just wanted to start today’s note out with this chart and to be honest…this has been a long time in the making and it seems a lot of big time players want oil and gas higher…can you say profits, big time profits! Of course the populace or the end user ends up devoting a bigger portion of their discretionary spending toward energy costs but they’ll pay it. This is a tax on the consumer and its why the Federal Reserve has a major problem…
Anyway check out RBOB and just to note the last time RBOB made decadal highs, the SP500 went on to drop some 36% over the next 5 months. Will it happen again? Not sure but as Magnelibra Econemotions has been hammering for months, REGIME CHANGE is upon us and all those conditioned to consistently buy better heed a word of caution:
As for the SP500 during this RBOB rally in 2008:
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