Energies - Sep 28,2009
Sunday, September 27, 2009
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review
For the week of September 28th, 2009
By PitGuru Daniel Cronin
Energies had a dismal week after a big build in all 3 main energy inventories sending the price of Crude lower from $72-$65. Crude Oil had a build of +3mil barrels to liquidate prices -8% to close at $66.02. Heating Oil was down 8.1% as this built more than 2 million and Gasoline had the worst week -11% to $1.6205 as this market showed an enormous build of +5mil barrels. Natural Gas was once again on the plus side, +7% to $3.98 in the October contract as the short squeeze is still on in this market.4
Subscribers to the premium commentary would know that there is a possibility for huge support in the Oil market at $65 as this is the last low in the continuous contract on August 17th. Fridays low was $65.05 and I believe that if it breaks this number it could very well see $62.50. The USD has now seen a bit of a short squeeze as the crowded trade reversed as traders took profit. It is now 2 and a half cents below this year’s high of $1.4850 in the Euro/USD and has traded below support of $1.4610.
This week may be a busy one for investors to digest as there are major economic data points coming out. Chief among the reports is the Labor Department's monthly reading on the labor market, due Friday. Unemployment is considered one of the economy's biggest obstacles. Investors will also get reports on home prices, manufacturing, consumer confidence, construction spending and factory orders. Beyond the economic data, investors may be watching for updated outlooks from companies ahead of third-quarter earnings reports next month. If the market gets a higher unemployment number on Friday then this market may trade lower.
Be prepared for the possibility of a very volatile week and keep an eye out for the economic data along with the movement in the USD. Look for insight in the premium service’s daily commentary.
4 http://www.eia.doe.gov/
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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