Stock Market Micro Intraday Crash Shows Us Where The Safe Havens Are

WOW....Now that was an exciting day in the market!!
This day will be talked about for years to come and the individual who hit the wrong button (“B” for billion instead of “M” for million) to sell billions instead of millions will have a tough time finding another job… Maybe this person can do commercials for Microsoft Windows showing how one simple key stroke can crash a system… lol

On a more serious note, a member in the chat room had a good point… Who would create a program that can not only bankrupt the company in one key stroke but also crash the entire broad market in 10 minutes losing millions of investor’s hard earned money??

I will keep this short with my Cole Notes Version on a few opinions of mine.

Banks – Good for taking your money and crashing the markets
All we have heard about in the past year is bank this, and bank that…. They take our money, bet on crazy investments, lose it, then get free money from the Feds to replace that lost money and they keep it for them selves….

Well today the market crashed because of a bank which should not be a surprise after everything else they have messed up. But to add more to the fire I had a lot of subscribers and followers today tell me they tried to trade with their brokers and they could not get orders to be executed. When I asked these individuals who they are using I got the same response… They were trading through a bank… This really makes my upset as I hate watching the bad guys (banks) keep winning/taking everyone’s money…..

Stock Market Circuit Breakers Failed
I find it amazing how the financial system has circuit breakers to protect investors from a market crash yet today they did not get triggered…

Rule is (and dumb one in my opinion) is that a circuit breaker (halts trading on the stock market for a set period of time) can only be triggered before 2:30pm ET. Funny thing is that the crash happened 7 minutes after 2:30. Manipulation???

2-3 Week Market Correction, Corrected in One Day
A pullback in the broad market which normally would have taken a few weeks at the most happened in one afternoon which is amazing really. Don’t get me wrong, I thought what happen today was very interesting, profitable and a lot of fun. But a move this drastic does throw a wrench into everyone technical analysis and it will be a few days before we get enough price action to start piecing this market back together for what looks most likely to unfold in the coming days and weeks.

Gold & US Dollar Rally Together
The past 2 weeks we have seen gold and the dollar move up together. This is very strong for gold. Even if we see the dollar roll over and head south that would help boost the price of gold… The short term charts for gold are looking tired be sure to watch the video below.

End of week Trading Conclusion:
This week was a crazy one with gold and the dollar moving higher together and the stock market crashing over 9% in one day…

It will take a few days for all this extreme price action to smooth out as we try and grasp if this is a bottom or the beginning of a major meltdown.

Just click here if you would like to receive Chris Vermeulen's Trading Analysis and Signals.



Share

Crude Falls on Concern European Debt Crisis Will Derail Economic Recovery

Crude oil tumbled, heading for its biggest weekly decline in 16 months, on concern Europe’s debt crisis will derail the global economic recovery. Futures dropped as much as 3.4 percent as equities fell amid speculation Greece’s debt crisis will spread to other countries. German Chancellor Angela Merkel said euro area countries must speed up efforts to tighten financial regulation and pursue budget consolidation. “The continued problems over in Europe seem to be infecting the rest of the world,” said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida. “If this thing continues it could really hurt the chances of a global recovery.”

Crude oil for June delivery fell $1.84, or 2.4 percent, to $75.27 a barrel at 12:32 p.m. on the New York Mercantile Exchange. Earlier, it touched $74.51 a barrel, the lowest level since Feb. 16. Futures are down 13 percent for the week, the biggest drop since the week ended Dec. 19, 2008. Oil settled at an 11 week closing low of $77.11 in New York yesterday after the euro fell against the dollar and the Dow Jones Industrial Average lost as much as 998.5 points, a 9.2 percent plunge that was the biggest intraday percentage loss since 1987. Futures touched $87.15 a barrel on May 3, the highest level since October 2008.

Shakeout ‘Overdue’
“The oil market was overdue for a shakeout like this,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut based procurement adviser. “Eighty seven dollars certainly wasn’t a justifiable level based on the fundamentals and if you start thinking about the potential ramifications for economic growth of what’s happening in Europe.”

A 110 billion euro ($140 billion) aid package to avoid a default by Greece has failed to prevent bond yields from rising, driving up borrowing costs for countries including Spain and Portugal. Moody’s Investors Service yesterday placed Portugal on review for a possible downgrade.

U.S. payrolls jumped 290,000 last month, more than the median estimate of economists surveyed by Bloomberg News, after a revised 230,000 increase in March that was larger than initially estimated, figures from the Labor Department in Washington showed today.

If commodities and equities “struggle to move higher in the wake of this positive report, the specter of bearish forces for growth may be larger than participants are currently pricing in and could push commodity and equity markets lower,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant, in a report today.

Equities Fall
The Standard & Poor’s 500 Index fell 0.7 percent to 1,119.9 at 11:38 a.m. after plunging as much as 3 percent. The Reuters/Jefferies CRB Index of 19 commodities fell 0.7 percent to 260.41, the weakest since Feb. 5. Ten of the commodities retreated, led by cocoa, crude and heating oil. “The market is not getting over the concerns of where we end up after the Greece situation gets resolved,” said John Kilduff, a partner at Round Earth Capital, a New York based hedge fund that focuses on food and energy. Brent oil for June settlement declined $1.60, or 2 percent, to $78.23 a barrel on the London based ICE Futures Europe exchange.


Reporters Margot Habiby and Aaron Clark can be reached at mhabiby@bloomberg.net and aclark27@bloomberg.net.



Share

MarketClub Crude Oil, Gold, Natural Gas and U.S. Dollar Numbers For Friday Morning

Crude oil was higher due to short covering overnight as it consolidates some of the decline off April's high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. If June extends the decline off April's high, the 87% retracement level of the February-April rally crossing at 72.86 is the next downside target. Closes above the 20 day moving average crossing at 83.66 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 82.52. Second resistance is the 20 day moving average crossing at 83.66. First support is Thursday's low crossing at 74.58. Second support is the 87% retracement level of the February-April rally crossing at 72.86.

Natural gas was slightly higher due to short covering overnight as it consolidates above trading range support crossing at 3.914. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. A downside breakout of trading range support crossing at 3.914 would open the door for a possible test of weekly support crossing at 3.339 later this spring. Closes above the 20 day moving average crossing at 4.117 would temper the near term bearish outlook. First resistance is the 10 day moving average crossing at 4.117. Second resistance is last Wednesday's high crossing 4.424. First support is Thursday's low crossing at 3.855. Second support is weekly support crossing at 3.339.

The U.S. Dollar was lower due to profit taking overnight as it consolidates some of this year's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If June extends this year's rally, the 75% retracement level of 2009's decline on the weekly continuation chart crossing at 85.85 is the next upside target. Closes below the 20 day moving average crossing at 82.00 are needed to confirm that a short term top has been posted. First resistance is Thursday's high crossing at 85.46. Second resistance is the 75% retracement level of 2009's decline on the weekly continuation chart crossing at 85.85. First support is the 10 day moving average crossing at 83.03. Second support is the 20 day moving average crossing at 82.00.

Gold was higher overnight and is poised to extend the rally off February's low. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that additional gains are possible near term. If June extends the rally off March's low, the 87% retracement level of the December-February decline crossing at 1206.90 is the next upside target. Closes below the 20 day moving average crossing at 1162.60 are needed to confirm that a short term top has been posted. First resistance is Thursday's high crossing at 1211.90. Second resistance is the December high crossing at 1230.00. First support is the 10 day moving average crossing at 1175.90. Second support is the 20 day moving average crossing at 1162.60.




Share

Crude Oil Daily Technical Outlook For Friday

Crude oil dropped to as low as 74.59 and formed a temporary low there and recovered. Intraday bias is turned neutral for the moment and some consolidations might be seen. But upside should be limited below 61.8% retracement of 87.15 to 74.59 at 82.35 and bring fall resumption. On the downside, below 76.56 minor support will flip intraday bias back to the downside. Break of 74.59 will target a test on 69.05 key support.

In the bigger picture, as noted before, 33.20 is viewed as a correction to the whole correction that started at 2008 at 147.27. Such rise might have completed at 87.15 already, ahead of 50% retracement of 147.27 to 33.2 at 90.24. Break of 69.50 support will break the series of higher low pattern from 33.2 and will be an important indication that the trend has reversed. In such case, we'll turn bearish on crude oil and expect the then down trend to target a new low below 33.2.....Nymex Crude Oil Continuous Contract 4 Hours Chart



Share

What Are You Waiting For....Start Trading Oil Today With 10 FREE Trading Lessons!

Dow loses 1,000 points or gains 100, either way it's time to start trading now with 10 FREE trading lessons from the MarketClub.

MarketClub Trade School is your own personal trading university where you set the curriculum with some of the most well known professional traders in the world.

MarketClub puts all of your research tools in one easy to use package that together gives you the edge you need to build and manage your investments.

So weather the market is going up or coming down just Click Here to get started with your 10 FREE lessons and be ready to put them to work right away!


Share

Where is Crude Oil Headed on Friday?

CNBC's Sharon Epperson discusses the day's activity in the commodities markets, and looks ahead to where oil is likely headed tomorrow.





Get 10 Trading Lessons FREE


Share

Crude Oil Bulls Continue to Take on Chart Damage....Bears Hold Clear Advantage

Crude oil closed down $3.53 at $76.44 a barrel today. Prices closed nearer the session low today and hit a fresh three month low of $74.58 amid the EU debt crisis that is playing out and which has rattled most markets. A stronger U.S. dollar index and meltdown in the stock markets were main bearish factors for crude today. Serious near term chart damage has been inflicted in crude this week, to suggest a near term market top is now in place.

Natural gas closed down 7.5 cents at $3.917 today. Prices closed nearer the session low today, scored a bearish "outside day" down on the daily bar chart and scored a fresh contract low. The bears have the solid near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $4.25.

The U.S. dollar index closed up 84 points at 85.04 today. Prices closed nearer the session high today and hit another fresh contract and 12 month high. European Union sovereign debt troubles will continue to support the dollar index. The bulls have the solid overall near term technical advantage. There are still no early technical clues to suggest a market top is close at hand.

Gold closed up $28.00 at $1,203.00 today. Prices closed near the session high today and hit a fresh five month high of $1,209.20. Safe haven buying amid the European Union debt crisis is fueling strong gains in gold. A stronger U.S. dollar and lower crude oil prices failed to limit the strong buying interest in gold today. A meltdown in the U.S. stock market in afternoon trading gave gold prices an additional boost. Gold bulls have the solid near term technical advantage and gained more upside technical momentum today.

Check out the new "Trend TV"

Share

Latest Deepwater Horizon Headlines

Market Loss from Event Could Be $3.5B

Cofferdam Arrives at Leak Site

Hayward: 'Top Kill' Might Seal Leaking Well Sooner

Exxon Valdez? Call it Apollo 13



Share

Crude Oil Tumbles to Nine Week Low on Stronger Dollar, Rising Supplies

Crude oil fell to a nine week low in New York as the euro dropped against the dollar on concern that Greece’s debt crisis will spread, curbing economic growth. Oil has lost 8 percent since May 3, the steepest three day decline since July 2009, as the dollar surged versus the common currency, reducing the appeal of commodities as an alternative investment. Moody’s placed its Aa2 rating for Portugal on review for a possible downgrade, a process that will conclude within three months, the company said in a statement yesterday.

“The oil market is being hit by a double whammy,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas based energy consultant. “The rise in the dollar is pummeling crude. Also, there are global growth concerns which have increased because of the credit downgrades in Europe and the Greek debt crisis.” Crude oil for June delivery fell 71 cents, or 0.9 percent, to $79.26 a barrel at 9:58 a.m. on the New York Mercantile Exchange. Futures touched $78.24, the lowest level since March 1. Prices have climbed 41 percent in the past year.

Brent oil for June settlement declined 56 cents, or 0.7 percent, to $82.05 a barrel on the London based ICE Futures Europe exchange. The contract touched $81.12, the lowest level since March 31. The euro dropped 0.5 percent to $1.2748 from $1.2814 yesterday. The common currency touched $1.2691, the weakest level since March 2009.
Standard & Poor’s last month downgraded Greece’s debt to junk and followed with cuts to Portugal and Spain.

‘Mass Exodus’

“You’re starting to see a mass exodus as people are expecting more problems from the European debt crisis,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. U.S. stockpiles of crude oil rose 2.76 million barrels last week to the highest level since June, an Energy Department report showed yesterday. It was the 13th gain in 14 weeks.

Crude oil inventories at Cushing, Oklahoma, where the New York traded West Texas Intermediate grade is stored, rose 4.9 percent to 36.2 million barrels, the highest level since the department began reporting on supplies at the hub in April 2004. Oil for June delivery is at a $3.13 a barrel discount to the July contract in New York, the widest spread in more since Feb. 17, 2009. December crude is trading at a $7.08 premium to the front contract.


Reporter Mark Shenk can be contacted at mshenk1@bloomberg.net



Don't miss our newest videos....

Did You Pull the Trigger on The Dow?

The S&P 500 Went South....Did You Cash in Your Chips?




Share

Crude Oil Daily Technical Outlook For Thursday Morning

Crude oil's fall from 87.15 accelerated to as low as 78.87 before recovering mildly. The break of 80.53 support suggests that whole rise from 69.05 has completed with a double top reversal pattern (87.05, 87.15). Near term outlook is turned bearish and further fall should now be seen to retest 69.05 support. On the upside, above 81.70 minor resistance will turn intraday bias neutral and bring recovery. But risk will stay on the downside as long as 87.15 resistance holds.

In the bigger picture, medium term rise from 33.20 is viewed as a correction to the whole correction that started at 2008 at 147.27. Our preferred view is that rise from 33.2 is in form of a three wave structure (73.23, 65.05, ?) and should be near to completion. Strong resistance is expected around 90 psychological level, which coincide with 50% retracement of 147.27 to 33.2 at 90.24 and 61.8% projection of 33.2 to 73.23 from 65.05 at 89.79, and bring reversal. Hence, even though another rally cannot be ruled out, upside potential should be limited. On the downside, break of 69.50 support will break the series of higher low pattern from 33.2 and will be an important indication that the trend has reversed. In such case, we'll turn bearish on crude oil and expect the then down trend to target a new low below 33.2.....Nymex Crude Oil Continuous Contract 4 Hours Chart.


Don't miss our newest videos....

Did You Pull the Trigger on The Dow?

The S&P 500 Went South....Did You Cash in Your Chips?



Share

The Moment of Truth for Gold, Silver, Crude Oil & SP500

It has been an exciting couple weeks with the stock market slowly forming its top before breaking down this week. I have been warning everyone keep tightening your protective stops and to keep new positions small because once prices start to sell off they will most likely drop like a rock.

This week we have seen all the markets around the world breakdown and this indicates that there could be some large waves of selling in the near future. Traders and investors are very bullish on both stocks and commodities and financial market is designed to hurt the largest group of investors possible. So with over 53% of trader’s bullish and only 18% bearish (same readings as the Jan high) it makes for a perfect blood bath in the market catching the majority off guard left holding the shares.

Here is a chart of the SP500 ETF – SPY Daily Chart

You can see from simple analysis these repeated patterns in price and volume.



Mid-Week Trading Conclusion:

The broad market is now in the middle of a trend reversal and during times like these we can see wild price swings in stocks and commodities making trading much more difficult. But a few more sessions and we should see things smooth out and provide some great shorting opportunities before the market starts to head back up to make new 2010 highs.

Just click here if you would like to receive
Chris Vermeulen's Newsletter of ETF Trading Signals



Share

Crude Oil Bulls Take on Serious Chart Damage....Bears Take Clear Near Term Advantage

Crude oil closed down $2.95 at $79.79 a barrel today. Prices closed nearer the session low today and hit a fresh 10 week low amid the EU debt crisis that is playing out. A stronger U.S. dollar index was a main bearish factor for crude today. Serious near term chart damage has been inflicted in crude the past two days, to suggest a near term market top is now in place.

Natural gas closed down 3.8 cents at $3.975 today. Prices closed near mid-range today in quieter trading. The recent pause at lower price levels is not bullish. A minor bear flag has formed on the daily bar chart. The bears have the solid near term technical advantage.

Gold futures closed up $5.40 at $1,174.60 today. Prices closed nearer the session high today as traders stepped in to "buy the dip" and do some bargain hunting at lower price levels. A stronger U.S. dollar and lower crude oil prices did limit the upside in gold today. Gold was also supported today on safe haven buying support as rioting occurred in Greece due to austerity measures taken by the government to reduce is massive debt. No chart damage occurred on the downside correction.

The U.S. dollar index closed up 79 points at 84.22 today. Prices closed nearer the session high today and hit another fresh contract and 12 month high. European Union sovereign debt troubles will continue to support the dollar index. The bulls have the solid overall near term technical advantage. There are still no early technical clues to suggest a market top is close at hand. However, the dollar index is now short term overbought, technically.


Don't miss our newest videos....

Did You Pull the Trigger on The Dow?

The S&P 500 Went South....Did You Cash in Your Chips?


Share

Did You Pull the Trigger on The Dow?

We have been concerned for some time that the market was in a rotational phase and that some key levels were being tested on the upside. The yesterday's action, Tuesday, can only be viewed one way, and that is negative. We do not expect this market to make a miraculous recovery to new highs and would not be surprised if we have seen the highs for the year.

In today's short video on the Dow, we look at potential downside targets that this market may be headed for. One of the key things to remember in trading, and this applies to all markets, is perception. This is why technical analysis plays such an important part in detecting shifts in market perceptions. Our "Trade Triangles" have done extraordinarily well in this environment.

Just click here to watch Did You Pull the Trigger on The Dow? and as always you can watch our videos without registration and there are no fees involved. Please take a minute to leave a comment and let us know if you pulled the trigger on the DOW.


Watch: The S&P 500 Went South....Did You Cash in Your Chips?


Share

Crude Oil Tumbles Below $80 as Euro Drops on Greek Debt Crisis

Crude oil fell below $80 a barrel in New York as the euro dropped against the dollar on concern that Greece’s bailout may have to be extended to other indebted nations. Oil slipped as much as 4.3 percent as the common currency tumbled to its lowest level against the dollar since March 2009, curbing the appeal of commodities to investors. U.S. stockpiles of crude oil rose 2.76 million barrels last week to the highest level since June, an Energy Department report showed today.

“The Greek crisis appears to be spreading, which is raising concerns about the economic recovery,” said Phil Flynn, vice president of research at PFGBest in Chicago. “Prices have been supported on expectations that demand will climb as economies rebound. Now the focus may return to the market fundamentals and the huge oversupply of oil.”

Crude oil for June delivery fell $2.54, or 3.1 percent, to $80.20 a barrel at 10:37 a.m. on the New York Mercantile Exchange. Futures touched $79.15, the lowest level since March 22. Prices slumped 6.9 percent yesterday and today, the biggest two day drop since Feb. 4 and 5.

Brent oil for June settlement declined $2.44, or 2.9 percent, to $83.23 a barrel on the London based ICE Futures Europe exchange. European Central Bank council member Axel Weber said today there is a threat of “grave contagion effects” in the euro area. The euro fell 1 percent to $1.2855, down from $1.2987 yesterday. The 16 nation currency touched $1.2804, the weakest level since March 12, 2009.....Read the entire article.


New Video: The S&P 500 Went South....Did You Cash in Your Chips?


Share

The S&P 500 Went South....Did You Cash in Your Chips?

For some time now we have been concerned about the lack of upside momentum and the divergences that have been building in many key oscillators. We were also concerned that we'd reached a very important Fibonacci level which we pointed out in a recent video.

It never ceases to amaze me how these levels have worked both in the past and in the present. If you're serious about the markets, you must pay attention to these key levels as many professional traders do, and perhaps you will understand why.

In today's short video, we're looking at the S&P 500 and some of the downside targets we have scoped out using a very simple tool. We had a nice run on the upside based on our "Trade Triangle" technology and we are happy to cash in our chips and watch from the sidelines for the time being.

Click here to watch The S&P 500 Went South....Did You Cash in Your Chips? and as always you can watch our videos without registration and there are no fees involved. Please feel free to leave a comment and let us and our readers know what you think is the direction the markets are headed.




Share

Crude Oil Daily Technical Outlook Wednesday Morning

Crude oil dropped sharply to as low as 81.85 so far and further decline would still be seen to 80.53/81.29 support zone. Note that as long as this 80.53/81.29 support zone holds, we're still treating price actions from 87.09 as consolidations in the larger rally only. Above 83.48 minor resistance will indicate that fall from 87.15 is completed and will flip intraday bias back to the upside for retesting this retesting. However, decisive break of 80.53 will argue that whole rise from 69.05 is completed with a double top reversal pattern (87.05, 87.15) and will turn outlook bearish for deeper decline

In the bigger picture, medium term rise from 33.20 is viewed as a correction to the whole correction that started at 2008 at 147.27. Our preferred view is that rise from 33.2 is in form of a three wave structure (73.23, 65.05, ?) and should be near to completion. Strong resistance is expected around 90 psychological level, which coincide with 50% retracement of 147.27 to 33.2 at 90.24 and 61.8% projection of 33.2 to 73.23 from 65.05 at 89.79, and bring reversal. Hence, even though another rally cannot be ruled out, upside potential should be limited. On the downside, break of 69.50 support will break the series of higher low pattern from 33.2 and will be an important indication that the trend has reversed. In such case, we'll turn bearish on crude oil and expect the then down trend to target a new low below 33.2.....Nymex Crude Oil Continuous Contract 4 Hours Chart.



Share

Crude Oil Falls Towards $82 on High U.S. Stockpiles, Firm U.S. Dollar

Crude oil fell toward $82 a barrel on Wednesday, extending the steepest one day percentage loss in three months in the previous session, on rising oil inventories and a firm dollar. The dollar surged to a one year high against a basket of six major currencies .DXY. It climbed to its strongest since last May against the Swiss franc as share markets around Asia lost ground on heightening fears that Greece's debt woes could spread to other countries.

U.S. crude for June delivery fell 37 cents to $82.37 a barrel by 0459 GMT. The contract dropped $3.45, or 4 percent, to settle at $82.74 a barrel on Tuesday. In post settlement trading, it ended electronic trading at $82.07, down $4.15 or 4.78 percent, the largest one day percentage loss since the 4.99 percent slide on February 4.

London Brent crude lost 32 cents to $85.35 a barrel. "The main influences now are the rise in the dollar, the sovereign concerns in the euro zone spreading into Portugal and Spain. I think a pretty important factor though going forward is the build in oil stocks in the United States," said Ben Westmore, an analyst at National Australia Bank.

"The price at those low $80s per barrel sort of mark is consistent with the market fundamental alone. I would expect oil price to track around the low $80s for the rest of the week." The dollar, which rose 0.37 percent against a basket of currencies on Wednesday, was supported by signs that the U.S. economy was on the mend. Data released on Tuesday showed pending U.S. home sales rose 5.3 percent in March while factory orders increased 1.3 percent. Both numbers handily beat forecasts.

A strong U.S. currency makes dollar denominated commodities, such as oil, more pricey for holders of other currencies and tends to dampen crude prices. Crude oil inventories at the key storage hub at Cushing, Oklahoma, rose by 1.7 million barrels to a record high of 36.3 million barrels, data from industry group the American Petroleum Institute (API) showed.

Overall, U.S. crude stockpiles rose by 3 million barrels in the week to April 30, API data showed, versus analyst expectations of a 1.1 million barrel rise in the latest Reuters poll. Gasoline stocks rose by 1.5 million barrels last week, sharply higher than a rise of 200,000 barrels analysts had expected. Distillates, including heating oil and diesel, rose by 1.4 million barrels, versus expectations of a 1.7 million barrel rise. The U.S. Energy Information Administration's report is set to arrive on Wednesday at 1400 GMT.

Crude oil prices have not been seriously impacted so far from a giant oil spill off the U.S. Gulf Coast. A flotilla of nearly 200 boats tackled a massive oil slick in the Gulf of Mexico on Tuesday, taking advantage of calm weather to intensify containment efforts while a scientist warned that a powerful current could carry the crude to Miami and points beyond.


Here’s a Great Alternative to High Price Trading Courses


Share

Crude Oil Market Commentary For Tuesday Evening

Crude oil closed down $3.44 at $82.75 a barrel today. Prices closed near the session low today amid the EU debt crisis that is playing out. The bulls faded badly today but still have the overall near term technical advantage.

Natural gas closed up 1.6 cents at $4.016 today. Prices closed near mid range today and saw tepid short covering in a bear market. Prices last Friday hit a fresh contract low. The bears have the solid near term technical advantage.

The U.S. dollar index closed up 102 points at 83.42 today. Prices closed near the session high today and hit a fresh contract and 12 month high. European Union sovereign debt troubles will continue to support the dollar index. The bulls have the solid overall near term technical advantage. There are no early technical clues to suggest a market top is close at hand.

Gold futures closed down $11.00 at $1,172.30 today. Prices closed nearer the session low and scored a bearish "outside day" down on the daily bar chart, whereby the high was higher and low was lower than Monday's trading range, with a lower close. Profit taking pressure was seen today following recent gains in gold. Gold prices hit a fresh five month high early on today. Gold was also pressured by a stronger U.S. dollar index today. No significant chart damage occurred today, but strong follow through selling pressure on Wednesday would begin to dent bullish technical momentum in gold.


Get 4 FREE Trading Videos from INO TV!


Share

Randy Ollenberger: Is Now the Time to Invest in Oil?

Discussing whether now is the time to invest in oil, with Randy Ollenberger, BMO Capital Markets and Thaddeus Vayda, Stifel Nicolaus.




Dennis Gartman’s 22 Rules of Trading

Share

Crude Oil Tumbles Most in Three Months as Dollar Surges, Stocks Drop

Crude oil declined the most in three months as the dollar strengthened against the euro, curbing the appeal of commodities to investors, and a slowdown in Chinese manufacturing sent global equities lower. Oil fell more than $3 a barrel as the dollar climbed to the highest level versus the common currency in a year on concern the Greek debt crisis will spread. A Chinese purchasing managers’ index fell to a six month low. Prices topped $87 a barrel for the first time in three weeks yesterday on signals the U.S. economic recovery is accelerating.

“Prices are considerably lower because the dollar is very strong and equities are being pounded,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut based procurement adviser. “There’s been a strong reversal over the last 24 hours after we failed to hang above $87 for a second time.”
Crude oil for June delivery fell $3.05, or 3.5 percent, to $83.14 a barrel at 1:53 p.m. on the New York Mercantile Exchange. Oil dropped as much as 4.1 percent, the most since Feb. 4. Futures are up 4.8 percent this year.

Oil in New York rose as much as $1 a barrel yesterday to a 19 month high of $87.15 after the Institute for Supply Management’s factory index climbed to 60.4, the most since June 2004. Economists projected a gain to 60, based on a Bloomberg News survey. Prices last breached $87 on April 6 and 7. Brent oil for June settlement declined $3.05, or 3.4 percent, to $85.89 on the London based ICE Futures Europe exchange.

‘The Nasty Reality’

“Yesterday’s positive economic indicators have been overtaken by the nasty reality in Europe,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It looks like oil will remain under pressure”....Read the entire article.


Get 4 FREE Trading Videos from INO TV!


Share