Smoke

Some may be starting to wonder if it’s a smoke-and-mirrors magic act, but the cash market once again defied what would usually be considered bearish weather fundamentals in continuing to rise at all points Tuesday. It retained substantial prior-day support from June futures having jumped another 17.9 cents Monday, but such positive guidance will be lacking Wednesday after the Nymex contract retreated by 11 cents Tuesday (see related story).

Calling it a “fairy tale” and “nothing more than smoke and mirrors,” bankruptcy-bound Pacific Gas and Electric Co. late Thursday counter-attacked one of its severest critics, the utility consumer group, TURN, alleging that it “misstated the truth, manipulating facts” in an analysis released earlier in the day that attacked the utility’s proposed Chapter 11 reorganization plan. Even for these two long-time public adversaries, the rhetoric was particularly harsh.