Vlo has been topping at 56 for the last week...... Can it make the run to the next major challenge.....the biggest challenge in it's march up .......the massive 58 land of unhappys . The battle for 58 has a huge historical history......it is the old 62 ( before the CSI spin off) .
No secret I have been hedging that the MMs will drop vlo back one more time before taking 58 on...... So far I have been wrong .....but we are not at 58 yet .
I am 60% out, 40% in presently with the last load sold at 55.91.
Game on.....I need a minimum reset of 52.91 to make this work or I left $$$$ on the table.....
I think VLO is fixing to make a pretty big move, just not sure which direction. It seems to have stalled out for the time being and may sell off after earnings. Then again, it could just be resting for another big push to the $58-60 mark.
I agree Jet. Don't see it going down and not just saying that blindly.
They will report good earnings and the street is expecting good earnings.
So, the street will be looking towards the future. The second quarter is shaping up so far to be a great quarter. Great margins, great discounts, great ethanol market, great exports, etc.
We also have WTI to Brent Discount starting to blow out again.
We also have a historical build of crude inventories on the Gulf. The Gulf had a 2.4 million build of crude last week.
Remember when MPC and HFC had the huge stock appreciation runs from 2010-2012 because of the glut at Cushing and WTI blew out to a discount of upwards of $26/barrel. That could happen to Valero especially if the Government sits on its hands on the crude export ban. If this happens, fasten your seat belt.