Energies - Nov 09,2009
Sunday, November 08, 2009
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review For the week of November 9th, 2009 By PitGuru Daniel Cronin Last week was a relatively quiet week in terms of price action for the energy markets as Crude Oil was range bound from $76.50 to $80.50, up only .4% on the week as the market saw non farm payrolls come in as expected with job losses still mounting and unemployment rising to 10.2%. Still, the market did not fold here. The products were down this week but in very small amounts as the heat and gas cracks weakened up a bit with Gasoline -1.7% to $1.9243 and Heat down -.2% to $2.0035. Natural Gas had its first bad week in quite some time as inventories came in higher than expected to send this market down 8.7% from above $5.00 down to $4.595 in the Dec contract. The market sold off very hard on Friday as non farm payrolls showed a jump in unemployment to the tune of 10.2%, but a stronger dollar held crude prices above $76.50. This $76.50 is a key support number and the market has held there three consecutive times. It is interesting to see how strong the market is even when bad news comes out about the unemployment data. I believe Gold was a very strong factor last week in keeping the price of crude oil higher as the market learned of the huge purchase by India3 which led to the Gold surge up $55 just last week. Crude Oil was kind of hanging on the coattails of the gold market. I do feel like there is great support at the $75.00-$76.50 level in crude and would be a seller if the market dips below those levels as this would confirm the downside trend. Everything has a lot to do with the USD, however, and this market still looks like it may sell off again. Look for the Euro/USD to touch $1.50 and for Crude to trade between $76.00 and $80.00 this week. 3 http://www.bloomberg.com/apps/news?pid=20601116&sid=aFJy2rKtaO04
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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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