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1 Mar 5 2010 @ 10:50am by Matt Smith in Capital Markets, Crude Oil, Economy, Global Energy, Natural Gas, Random, UK natural gas

Burrito Bites

Welcome to Nonfarm Friday, my favorite day of the trading month, as it brings a more volatile reaction than eating mentos and drinking soda. Here’s a random list of events that have defined my deliberations on markets this week:

  1. There was a spanner in the works of the engine room of the global recovery, as Chinese Manufacturing took a nosedive (please feel free to complete the expletive “oh —-“).
  2. To temper this news a little, India came through with impressive manufacturing growth, and is expecting economic growth to ratchet up.  
  3. US natural gas has hit a three-month low as negative sentiment is encouraged by falling  weather-driven demand as we enter shoulder months.
  4. Greece had a bond auction and it wasn’t a catastrophe, mostly due to reassurances made the previous day about how they were to narrow their deficit gap(ing hole). Greece lives to fight another day, while tragic flaws remain.
  5. Crude broke back above $80, mostly due to currency fluctuations and risk appetite, and less to do with market-specific fundamentals (per the trend of recent times). The 4 mb build in weekly inventories was not bullish, but also not unusual.
  6. UK natural gas hit a new low for the year, with a similar story of funky fundamentals to US natty (=improving weather outlook, lower demand).
  7. US unemployment data came in better than expected (-38k jobs vs. -68k expected). The number was teed up to provoke a likely positive response…if  it had been poor, it would have been blamed on recent inclement weather, but as it was good it was viewed as robust. Hum dee dum.  


One good list deserves another, so let’s move straight on to the burrito bite buffet:

–Green tip of the week – save electricity on those middle of the night excursions by buying glow in the dark toilet paper.

–10 companies reinventing energy infrastructure.

–If anyone is able to chip in the additional $1,999,230, I’d love to combine our savings and  buy a Greek island. It’s for a good cause too.

Natural gas wins hands down in the fight against global warming.  

–This is random but fascinating – insuring Nicole Kidman. Also the first comment below the article about Jackie Chan is great.

–We hear about peak oil, but what about peak natural gas?.

–Prohibiting insider trading in commodities – The Eddie Murphy rule  (proceed to next bite if you have never seen the film Trading Places).

–A monster of an article, but fascinating – Michael Burry, the man who led the way in shorting subprime.

–Looking to own the latest in popular pets? – go get a goat.

The Burrito Deluxe Award of the week goes to equity markets. After a tentative start to the week, they are finishing with a flourish, having survived a torrential downpour of data in this first week of the month – avoiding potential pitfalls, potholes and puddles.

The Burnt Burrito Award of the week goes to stuttering Chinese data, from tumbling manufacturing numbers to stumbling forecasts of refinery slowdowns.

1 Comment on this post:

  1. lovingburritos says:

    glow in the dark toilet paper? it seems almost entirely likely that this would lead to some sort of cancer – is that worth not turning on the lights?

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