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Energies - Mar 15,2010
Sunday, March 14, 2010
by PitGuru.com Authors of PitGuru.com
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The Energies Pit Review For the week of March 15th, 2010 By PitGuru Daniel Cronin The Energy markets were mixed last week as equities were mildly higher, the dollar a bit stronger, oil slightly lower, and Nat Gas the biggest loser in the energy complex. Crude Oil gained to new 2010 highs at $83.11 even as the USD is still gaining against other major currencies and equities are still higher. Even as the price started to come down to Earth on Friday below $81 the crude curve continued to strengthen in the back as traders got squeezed out of short positions. Many traders are now looking at backwardation in the coming months and have gotten out of their short Dec10/Dec11 positions (which are up to the strongest point in many months) at -140. It looks as though the price of the oil market is a bit rich up here and needs to come down below $80 but a lot of traders are still trying to buy the pullback solely on what is happening with the WTI spreads. I believe if this market can get to $79.40 there will be a quick liquidation as everyone gets out of their longs as this seems like a very critical support point on the chart. I could see crude liquidating down to the $77 level if this critical support point gets broken. For now it seems as though many people still want to buy any of the pullbacks here. The same cannot be said for the action in the Nat Gas as this market saw prices depreciate another 4.2% or $0.193/mmbtu. Nat Gas has been in a downtrend since the middle of February and all signs continue to point toward prices possibly heading even lower before beginning to stabilize. I see the $4.00 point as good stabilization but with the weather heading into spring temperatures in the Northeast by the end of the week this market might just get there before you know it. 
***chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results.
Recent articles from this author
- PitGuru.com's Grains Analysis: Feb 06, 2012 - Sunday, February 05, 2012
- PitGuru.com's Grains Analysis: Jan 03, 2012 - Monday, January 02, 2012
- PitGuru.com's Grains Analysis: Dec 19, 2011 - Sunday, December 18, 2011
- PitGuru.com's Softs Analysis: Dec 19, 2011 - Sunday, December 18, 2011
- PitGuru.com's Energies Analysis: Dec 19, 2011 - Sunday, December 18, 2011
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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