Crak'n Up - Refiners Are Not At A Level Worth Buying Yet

"Refinery stocks are not ripe just yet, especially with crack spreads as weak as they are. We're already seeing three of the top four holdings in CRAK begin to roll over, including Marathon, Velaro, and Holly Frontier. Phillips 66 is the outlier.

We continue to wait for CRAK to reach to range bottom with a confluence of crack spreads. If refiners continue to breakdown, we'll revisit prior to the summer gas demand season."

CRAK intermediate TACVOL

CRAK 31.88/26.16
MPC 71.04/56.04
PSX 104.02/82.85
HFC 67.49/45.38
VLO 92.70/69.64