One Way, or Another, They’re Gonna Gitya Watch: The Administration has imposed a 1 year moratorium on building roads on 58 million acres of U.S. national forest land. The edict takes effect immediately and supercedes any State laws passed regarding road building. These roads are used for logging, mining and um, drilling, etc. So if you have a federal less in BFE National Park and no road, good luck to you, I’m guessing you’re not going to be getting an extension. 

Nutbag Watch - Day 5 - Fearing he was losing camera time to other world leaders, Kim Jung Il launched a sixth short range missle overnight and reiterated Khrushchev-like statements. It looks like its up to China to geld this guy.

In Today’s Post: 

1. Holdings Watch
2. Commodity Watch
3. Natural Gas Preview
4. EIA Oil Inventory Review
5. Stuff We Care About Today
6. Odds & Ends

Holdings Watch: 

• $10KP: $31,200 / 47% Cash / The Wiki Holdings Tab is Updated.

• Holdings Watch Current Thoughts: I’ve been adding calls into market and sector weakness for the last two weeks in the wake of 1Q earnings. I’m now thinking of taking a few chips off the table into near term rallies. Remember that June is one of the rare expiration months where you get five weeks in between options expirations so the front month contracts still have 3 weeks of life left after this week.

• Added (10) more WRES November $2.50 calls for $0.50 with the stock at $2.03 yesterday.

Commodity Watch: 

Crude oil rallied strongly ending the day up $1.63 at $65.08 following a bigger than expected draw on crude inventories and a generally bullish in tone EIA report. Crude is now trading at a seven month high.  The crude market also took heart from OPEC’s comments regarding signs of demand recovery. This morning crude is trading up a buck plus and above $66.

• Dollar Watch: The dollar fell out of bed overnight, breaking support at 80 and trading towards 79.50 and a five month low. Support looks to be closer to 76.

Natural gas jumped $0.32 to close at $3.96 yesterday after the EIA released a gas injection report of 106 Bcf but also revised past week’s storage tallies slightly lower. See comments on gas prices next section. This morning gas is trading up a dime at $4.06.

• Gas Supply Watch: We should get March natural gas supply data sometime today. Look for a continued decline in Total and Texas production.

• Tropics Watch: Hurricane season officially kicks off Monday, and TD1 has already formed and drifted harmless into the mid north Atlantic. The weather tab at left contains everything for your storm chasing needs.