PSX faces downside as crack spreads shrink; expect a pullback to low 200s in the next few months.

you have refiners like Valero and PSX which have a massive crack spread right now and it's so ridiculous because they are literally printing money because the the margins of this are so like what they're charging you and I to drive etc at the gas pump compared to what they're getting that oil for.

Um it is massive right now. I do expect that to shrink after Labor Day and I have highlighted Valero as one of my favorite shorts here over the next couple weeks.

The other thing to note is PSX which is Philipsu uh 99 here uh or 66 excuse me this did put in a daily topping tail yesterday. So this is a great reversal topping signal. You got your topping tail.

We know this chart is extended crack spread should be shrinking which will mean margins for them should be shrinking. I would expect a pullback all the way down to the low 200s in the coming couple months on this one.

So keep this on your radar guys. This is a big one.