Energies - Oct 19,2009
Sunday, October 18, 2009
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review For the week of October 19th, 2009 By PitGuru Daniel Cronin The energy market continued its stellar run along with the equity market and the falling dollar as Crude Oil was up 9% last week, breaking the big resistance of $75 to trade $78.75 in the November contract. Gasoline surged the most this week (+11.6%) as inventories fell by more than 5 million barrels sending the price up to $1.9793. Heating Oil gained 8.7% as its inventories decreased. Natural Gas was the laggard as it did not budge, starting and ending the week at $4.781. Inventories rose again in this market as the flatprice tries to fight the tons of cubic feet of Natural Gas in the ground. I mentioned last week that if the equity markets could see solid earnings from the big named companies then Crude Oil could retest the $75 level. Not only did some of the banks have good earnings, but the likes of Google and Intel2 helped shoot Crude much higher. The USD also helped out as this market was weaker again, trading at $1.4950 vs. the Euro - its highest level this year. It is getting into a bit of an overbought territory here as it approaches the $80 level. The trading range has moved now from $65-$75 to $70-$80 as it approaches the November expiration tomorrow and the December contract takes the lead. WTI spreads have gotten stronger with the Nov/Dec trading -39 and the Dec/Jan trading -47. The Dec9/Dec0 contract also got very strong trading -450 now from a low of -540 last week. Look to take some profit in the Crude Oil market this week as it tests $80. Big name technology companies are coming out with earnings with the likes of Apple leading off on Monday morning so it will be much of the same as last week. It will only go so far as the earnings growth will take it. Natural Gas is very unappealing here, struggling to get above $5 - I recommend staying away for right now. 2http://www.bloomberg.com/apps/news?pid=20601087&sid=afR6To42CWGc Past performance is not necessarily indicative of future results.
Recent articles from this author
- Financials - Mar 15,2010 - Sunday, March 14, 2010
- Energies - Mar 15,2010 - Sunday, March 14, 2010
- Metals - Mar 15,2010 - Sunday, March 14, 2010
- Softs - Mar 15,2010 - Sunday, March 14, 2010
- Grains - Mar 08,2010 - Sunday, March 07, 2010
About the author
Daniel Cronin - PitGuru.com's Energies & Metals Guru Daniel Cronin has spent years on the floor of the Nymex as part of one of the largest energy floor brokerages in the business. His extensive experience stems from not only his Pit background but also through intense studying and implementation of complex technical analysis and market trading techniques via the mentorship of the now retired Ralph Acampora. Mr. Cronin brings subscribers a rare combination of book smarts and real world trading experience in one of the most volatile market sectors in the futures industry. Matthew Pierce - PitGuru.com's Grains Guru Mr. Pierce is a unique acquisition for Futures Press Inc. in that he has an unmatched level of real hands-on experience within the industry in addition to his floor trading expertise and top notch education at the University of Illinois College of Agriculture. Matthew has literally cultivated the perfect professional career as a grain expert by working with the industry's most recognizable companies such as Cargill, LaSalle Group, Conagra, Walsh Trading Inc. and many more. In addition to trading on the floor of the Chicago Board of Trade, Mr. Pierce writes what many in the business believe to be the best kept secret amongst trading reports available in the industry. Jurgens H. Bauer - PitGuru.com's Softs Guru Jurgens owns and operates his own order execution firm on the ICE trading floor. He has been a member since 1987. His firm, Jurgens Bauer and Associates, specializes in executing option orders for a wide array of customers and a variety of industry participants, including individual speculators, funds and members of the trade. While Jurgens has been an active member of the trading community he has also spent time since 2000 working at raising awareness of environmental commodities, educating industry professionals on emissions trading, brokering transactions between private counter parties and developing SO2 and NOx contracts for the NYMEX. Frank LaMantia - PitGuru.com's Financial Guru Soon to be Dr. LaMantia, Frank is not only one of the most educated traders on Wall Street, but also maintains an industry resume of substance and depth. Frank has worked extensively on an Institutional preferred stock syndicate desk, as a government bond specialist, and as a financial advisor all the while achieving multiple licenses in the finance field. With an extensive and impressive client list (including Citibank, Bear Stearns, Lehman Brothers, AG Edwards, Mesirow, UBS, and numerous Hedge Funds), Mr. LaMantia brings his one-of-a-kind background to his current occupation of full time trader.
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