Monday or Tuesday expect regulators to change the rules to the game. This should cause more volatility in my opinion as opposed to less but time will tell. Crude and the distillates fell hard today as expected and prices hit our $72 price objective. Though it may be a few days premature clients were advised […]
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Pigs get Slaughtered
Bulls make money in bull markets and bears make money in bear markets BUT pigs get slaughtered. We recognize most have heard this saying but are you applying this to your trading? Lower high and lower low in Crude as prices traded lower again today making it 8 out of the last 9 sessions. Though […]
Intestinal Fortitude
If you do not have the stomach for volatility our suggestion would be to take the week off. Crude oil is showing signs of life posting a higher high and higher low in today’s session. Use a trade below $76 in June or above $79 as a sign of where from here. On further signs […]
Fear Factor
Not just a canceled television show but an accurate description of most major asset classes. This volatility will persist at least into next week so be careful there is no reason to be a hero. In just over one week oil has given back gains from the last three months. There will be a time […]
Men vs. Boys
Days like today in the market separate the men vs. the boys. Any day markets move 5% in just minutes there is an opportunity to make a lot or lose a lot of money almost instantly. Some panic, others capitalize, others watch in awe. We were not in the right place with clients everywhere but […]
Cinco de Mayo
In the last three sessions Crude has come down $7 in June futures. Prices have retraced over 50% from their February low and April high but we do not think sellers are done. At this moment we are expecting $76-78. Clients are neither long nor short at the moment. The near 10% correction in the […]
Monitor Relationships
Base and precious metals no longer appear to be correlated, Treasuries inverse relationship to indices no longer exist, dollar up equals commodities down right…wrong. When things do not make sense take your position size down. Mixed results in Crude today with the front month lower and back months gaining. Take for instance just the first […]
Volatility to Continue
There may be a number of reasons why but the bottom line is volatility in the commodity markets is here to stay. June Crude oil is back above the 20 day MA having gained $4 on its way to $87 in our opinion. RBOB and heating oil are on the verge or breaking out to […]
Extended Period
Another FOMC meeting has passed with no change in rates or verbiage. The lack of inflation comments are comical as gold will most likely flirt with $1200/ounce and oil is approaching $90/barrel. As a trader one cannot fight the Fed but they are just kicking the can down the road in my opinion by keeping […]
Goldman gets Grilled
Does any one really believe Goldman Sachs does not move the markets? Oil is approaching the same level it bounced from twice in the last week, will this hold true again? The action is too dicey for us to issue trade recommendations as we are seeing $2-3 swings on a daily basis. We like being […]