Consumer confidence little changed vs last month,Inflation metric ticked down by .1 and jobs plentiful stayed strong.Below is the graph of the ratio of Jobs plentiful/Jobs hard to get. This spread continue to strengthen and widen out which is a positive for the Economy.I am in the process of determining whether the higher spread indicates a cap on wages or it actually is a precursor to higher wages I have to compare a few other metrics before any answer can be reached.Monthly chart with red horz lines =recession
Brent well bid this morning taking direction from strong Gasoil/Distillate markets.India whose fiscal year starts April 1 Said they are expecting to almost double the Amount of Diesel use compared to last year. This isn’t only excuse for Move higher but someone in market nervous about Diesel supply. The gasoil “Supply spread” 2nd-3rd month calendar spread is moving higher and thus tighter supply.A daily chart below
using the same thinking as above The 2nd and 3rd month Brent spread,Supply spread also moving higher pricing in less supply or more demand.The spreads are telling us what is happening it is just a matter of why it is happening.