KC is hitting some fibs and speculators have been getting heavily long over the past 3 weeks as per COT data. PMARP showing a good sign of over exuberance. From what I can tell the consensus on it is that there's a big shortage and it cant go down, which is common across a few other commodities at the moment (CL etc). Consensus is rarely correct.
Much of the rally on this seems to have been supported by the "Bid everything, muh fed saving the economy" narrative that popped up last month. A similar thing happened in 2008, Bear Sterns went under and JPM "saved the world", VIX got crushed to 16 (VIX is at 16.38 as of writing this) in the 4 weeks following, then we all know what happened from there.
Beware of big institutions saving the world narratives.
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COT just came out and large speculators bought a boat load. Sticking with this short for now.