The Greek parliament has approved the bailout package, and the market has accepted it with a strong corrective rally in the equities indices after yesterday afternoon featured some protective selling near the close. Clearing this hurdle seems to be clearing the way for a test of all-time highs, as the risk on speculators gain control. However, it is interesting that the bond market is not reflecting this action so wholeheartedly, still trading above the 150 handle. This is of more interest considering the nature of Fed Chair Yellen's rather rosy testimony on the US economy, and their intent to stay on track with at least one initial rate hike in 2015.
The energy markets are rather quiet today, as the fundamentals remain unchanged. The draws in crude supplies domestically are off to some extent from the bearish pressure from the Iran deal, demand concerns and technicals. Additionally, the draw down in yesterday's EIA data was off to some extent due to a greater than expected build in the distillates, though gasoline was flat. Considering the subsiding of the Greek debacle for the time being, it would be hard to imagine that there would not be at least some sort of exploratory rally as demand stabilizes.
The natural gas data today showed a build of 99 BCF, slightly bearish to expectations, and once again the grinding rally was stopped as the price action retreated back to the mid 2.80's. This supply data, while modestly bearish, is seemingly the only thing keeping the price action from trading higher. With 2 weeks left on the options for the August contract, there are some great risk reward opportunities.