Energies - Oct 05,2009
Sunday, October 04, 2009
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review
For the week of October 5th, 2009
By PitGuru Daniel Cronin
Very interesting week in the energy markets. A positive week even though every single economic number came in other than expected. Crude Oil rose 5.7% to close just shy of the $70 level as inventories rose 2+ million barrels. The products led this surge as Gasoline was up 7.2% to $1.7409 and Heating Oil soared 9.1% to $1.8496. Natural Gas had its second best week of the year with the November contract leading higher by 18% to $4.718.
In my opinion, the crude oil market is trying to tell us something. The market had weaker equities with the Consumer confidence and Non-Farm Payrolls coming in lower than expected; a stronger USD at one point falling below the $1.4500 mark in Euro/USD; and rising inventories in Crude Oil the last two weeks, yet the flatprice still wants to gravitate higher towards $70 and not $65. This is a very positive sign for Crude especially on Thursday when Gasoline made a move higher. Crude can only go so far as the products. If you take a look at the daily chart one can start to see a flag forming here with higher lows and lower highs from $72-$65, and this means that at the end of this one traders may see a violent spike in the market. With the front spread still very strong one can only conclude that one will likely see higher prices to come in the week ahead.
Past performance is not indicative of future results.
***chart courtesy Gecko Software
Recent articles from this author
- Softs - Mar 15,2010 - Sunday, March 14, 2010
- Energies - Mar 15,2010 - Sunday, March 14, 2010
- Metals - Mar 15,2010 - Sunday, March 14, 2010
- Financials - Mar 15,2010 - Sunday, March 14, 2010
- Softs - 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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