Energies - Oct 26,2009
Sunday, October 25, 2009
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review For the week of October 26th, 2009 By PitGuru Daniel Cronin Energies, for the fifth week in a row, rallied as a falling USD and decreased inventories in the products led the charge. Crude Oil was up 2.3% to close above $80 for the first weekly close this year. Gasoline gained more than 3.2% as inventories built sending the price up to $2.0436/gallon. Heating Oil rise 1.6% to $2.0756 after the nasty cold spell the Northeast had last week with sub freezing temperatures. Natural Gas started the week out great but then failed to hold its rally once again settling almost unchanged: +.3% to $4.770. The market saw profit taking on Friday as both Crude fell below the $80 mark and the DOW retreated back from 10,000. The market seems to be toppish up at these levels here and the fact of the matter is that the Energy market will only go as far as the weakness in the USD. I haven't seen any type of pullback in the Euro/USD as this made the charge through $1.50 last week. If this continues crude could test the $85 mark, but for right now it doesn't appear that way as the WTI spreads indicate an overbought market. Both the Dec/Jan and Jan/Feb spreads are trading -74 respectively and the Dec9/Dec10 contract sold off to -535. This does not bode well for the flatprice in the short term. $77.50 is a good support level on the downside and $75 would be the next key mark. Earnings for major companies went well and sent the Dow over 10,000, but now the market needs to find another catalyst to keep prices afloat up at these levels. Natural Gas looked like it was really breaking out last week with prices rallying above $5.00, but it was not meant to be as the shorts slammed it back down below $4.75. The inventory numbers that came out Thursday were the tell tale sign that this market does not want to rally just yet. There is some good support at $4.25 in the Dec contract.
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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