Crude was higher again today trading back up to the 18 day MA but failed to get back above the down sloping trend line. What was disturbing today was how little the premiums moved in options. Talking to the floor there seems to be a ton of option selling in recent sessions. If prices can trade [...]
All eyes will be on the US dollar as the risk aversion trade and news whether a bailout will or will not happen out of Europe continues to be the driving force. As noted in our commentary Monday we expect some type of resolution and the flow of money that went into Treasuries and the [...]
Crude oil has advanced almost $5 off its’ lows in the last 2 sessions trading back above $77. Ideally you are already positioned to take advantage of this and further upside. In the March contract we see $80/barrel this week if not next. On that we would tighten ups stops and start looking to lighten up on your [...]
A hush came over the commodity market until FOMC decision. The streak has ended at 9 days with Crude pushing higher today by just less than 2%. We are fairly confident that an interim bottom was established yesterday; $68.59 in the January contract. We have clients long via March $5 call spreads expecting a $5-7 [...]
After 8 days of selling Crude is now oversold with the daily stochastic at 10 & 15 in the January contract. Clients have been advised to buy March $5 call spreads as we expect a $5 move higher in the coming weeks. Natural gas is too volatile for our liking currently. We will be looking [...]
Well we thought we were done trading Crude until 2010 but the recent 6 day onslaught convinced us otherwise and being $70 held today in January we advised clients to get involved. Clients were buyers of March $76/81 call spreads for $1800/per. We chose not to trade futures being we are out for the holiday [...]
Crude only closed $1 lower but that does not tell the whole story. If the dollar rally continues which we think it will for the immediate future prices should come off. We therefore will not be getting long until the dust settles. Natural gas is an entirely different animal. We are advising long call spreads [...]
Significant gains in week over week inventories had Energies on their heels today with Crude, heating oil & RBOB losers by 2%. Crude could go either way; we would like to get positioned long and most likely will for clients with a 60-90 day time frame but the dollar could be set for another dead cat bounce so [...]
Crude was lower on the day and looks to close about where we started the week. We are still anticipating further downside and see mild support at $76 followed by $74 on the January contract. 2 positive days in a row in natural gas as prices may actually be finding a bottom. We have been getting [...]
Crude oil was lower again today finding support around the 38.2% Fibonacci retracement level at $75.70 on the December contract. The path of least resistance appears down being prices did not move higher today with stocks rallying and dollar weakness. Intraday natural gas traded below the September lows but it appears we will close above those levels. We suggest long [...]
