Market Events To Watch For Wednesday, U.S. Energy Department Inventories

10:30 AM ET. Feb 20 US Energy Dept Oil Inventories

Crude Oil Stocks (previous 350.6M)

Crude Oil Stocks (Net Change) (expected +300K; previous -200K)

Gasoline Stocks (previous 218.7M)

Gasoline Stocks (Net Change) (expected -100K; previous +1.1M)

Distillate Stocks (previous 140.8M)

Distillate Stocks (Net Change) (expected -1.4M; previous -800K)

Refinery Usage (expected 82.2%; previous 82.3%)

Tuesday's Short Covering Has Crude Oil Closing Higher

April crude oil closed higher due to short covering on Tuesday as it extends last week's trading range.

The high range close sets the stage for a steady to higher opening on Wednesday.

Stochastics and the RSI have turned bullish hinting that sideways to higher prices are possible near term.

Closes above the reaction high crossing at $47.99 are needed to confirm that a short term low has been posted.

If April renews this month's decline, psychological support crossing at $35.00 is the next downside target.

First resistance is the 20 day moving average crossing at $42.90.

Second resistance is the reaction high crossing at $47.99.

First support is last Thursday's low crossing at $37.12.

Second support is psychological support crossing at $35.00.

Nymex Up First Time In Three Days, Exxon and Chevron Lift Broader Market

"Nymex Oil Advances for First Time in Three Days as U.S. Equities Rebound"
Crude oil rose for the first time in three days as the U.S. stock market advanced, signaling that fuel use in the world’s biggest energy consuming country may rebound....Complete Story

"Gasoline in New York Has First Gain in Three Days as Stock Futures Climb"
Gasoline futures rose for the first time in three days as U.S. stock indexes advanced after yesterday’s losses and on speculation that supplies of the motor fuel were unchanged last week....Complete Story

"ExxonMobil, Chevron Boost Broad Market"
ExxonMobil and Chevron outpaced gains in the Dow Jones Industrial Average on Tuesday as the oil giants bolstered the broad market. A rise in crude oil prices and positive earnings reports from smaller players encouraged buying....Complete Story

"38 Foreign Cos Register for 2nd Iraq Oil Bid Round"
Thirty-eight international oil companies registered at the Iraqi oil ministry to bid for the 11 groups of oil and gas fields put up for a second bidding round by Iraq at the end of last year....Complete Story

Changes Coming For Controversial Oil Leases, Total Denies Deal

"US Interior Sec to Review Oil Companies Controversial Leases"
U.S. Interior Secretary Ken Salazar said Friday that changes regarding oil companies' leases would likely be part of a comprehensive energy bill Congress is drafting....Complete Story

"Total CEO Denies 'Sealed Deal' with Iran for South Pars Development"
Total's Chief Executive Officer has denied that the French oil giant and Iran are signing a deal before the end of March for the next phase of development at the massive South Pars gas field....Complete Story

"AEA: Offshore Drilling Could Deliver Huge Payoff in Jobs, Revenue"
The American Energy Alliance said lifting the U.S. prohibition on new offshore drilling would provide 1.2 million jobs and substantial revenue....Complete Story

Crude Oil Higher On Short Covering, Still Below 10 Day Moving Average

April crude oil was higher overnight due to short covering but remains below the 10 day moving average crossing at $41.26.

Stochastics and the RSI have turned bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $43.41 are needed to confirm that a short term low has been posted.

If April renews this year's decline, psychological support crossing at $35.00 is the next downside target.

First resistance is the 10 day moving average crossing at $41.26.

Second resistance is the 20 day moving average crossing at $43.41.

First support is last Thursday's low crossing at $37.12.

Second support is psychological support crossing at $35.00.

Crude Oil's High Range Close Sets The Stage For Higher Open On Monday

March crude oil closed slightly lower on Friday due to profit taking as it consolidated some of Thursday's rally.

The high range close sets the stage for a steady to higher opening on Monday.

Stochastics and the RSI have turned bullish hinting that sideways to higher prices are possible near term.

Closes above the reaction high crossing at $42.68 are needed to confirm that a short term low has been posted.

If March renews this month's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 20 day moving average crossing at $39.70.

Second resistance is the reaction high crossing at $42.68.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

Crude Oil Falls On Deepening Worldwide Recession

Crude Needs to Close Above 5-Day Moving Average to Prompt Rally, PVM Says
Oil futures prices need to close above their five-day moving averages to make a sustained rally, broker PVM Oil Associated Ltd. said....Complete Story

"Crude Oil Falls as Equities Drop on Concern Global Recession Is Deepening"
Crude oil fell, retreating from its largest gain in seven weeks, as global stock markets declined on concern the recession is deepening....Complete Story

"Chu Focuses on US Energy, Not What OPEC Should Do"
Energy Secretary Steven Chu, whose agency has long taken the lead on global oil market policy, said he doesn't know what the Obama administration would urge OPEC to do at its meeting next month....Complete Story

Learn How To Effectively Use Stops In This New Video

This simple trading tip can and will make a difference in your trading results in 2009.

Stops are enormously important part of a traders arsenal of trading tools. Some traders confirm that stops are the most important part of their trading armour.

So here are three ways to use stops to protect your capital and lock in profits from a trade. These three money management techniques can be used in stock, futures and forex trading.

The important rule is that you do use a real stop in the marketplace. A friend of mine joked with me that that he had never seen a “mental stop” filled electronically or in the pits.

If the market is good your stop will not be hit. If the market is bad or changing direction then you’ll want to be out of it anyway. That is why stops are so crucial to trading success.

Click Here To Watch Video

Here are the three most commonly used types of stops. Which one do you use?

(1) Dollar stop.
(2) Percentage stop.
(3) Chart stop.

If you chose (1) you’d be correct, but, you would also be correct if you had chosen 2 or 3. All three are money management stops and are used to either lock in profits or protect capital.

1) A dollar stop, is when you set a predetermined dollar amount to a trade. Let’s say you want to risk $500 on a grain trade or $750 on a stock trade. Once you get your fill back from your broker or electronically online you simply figure from your fill price where to put your stop.

Pros: Easy to implement and use.
Cons: Can place stops too close in a volatile market

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2) Percentage stop, is a very simple way for you to place a stop on a position. Here’s how it works. Let’s say your trading account is 100,000 dollars and let’s say you only want to risk 1% of your total portfolio on any one trade. You simply take a $1,000 risk which represents 1% of your over all portfolio. This can help enormously in avoiding taking BIG LOSSES. A 1% loss is easy to absorb. A 30% or 40% loss in a trade is an account killer, and should be avoided at all costs.

Pros: Easy to implement and use.
Cons: Can place stops too close.

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3) Chart stop, a chart stop is where you place a stop that is either above or below a crucial chart level. The good thing about a chart stop is that this level is often used by other traders. That can both be a good thing and a bad thing, here’s why. Using either one of our first two examples only you know where the stop is. With a chart stop, a great many traders/brokers know that is where the stops are. In an illiquid market this type of stop should not be used, as many times brokers gun for the stops. In a highly liquid and active market this is a good stop to use.

Pros: Very easy to implement and use.
Cons: Can’t be used in thinly traded markets.

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So there you have it. Now you have all three ways to manage your money and protect your profits in 2009.

Use stops…let them work for you.

Click Here To Watch Video

Crude Oil Rally May Be One And Done, Near Term Low Might Be In

March crude oil was lower overnight as it consolidates some of Thursday's rally but remains above the 10 day moving average crossing at $37.18.

Stochastics and the RSI have turned bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $39.66 are needed to confirm that a short term low has been posted.

If March renews this year's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 20 day moving average crossing at $39.66.

Second resistance is the reaction high crossing at $42.68.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

Crude Oil Closes Above 10 Day Moving Average

March crude oil closed sharply higher on Thursday and above the 10 day moving average crossing at $37.51 signaling that a short term low might be in place.

The high range close sets the stage for a steady to higher opening on Friday.

Stochastics and the RSI are turning bullish hinting that sideways to higher prices are possible near term.

Closes above the reaction high crossing at $42.68 are needed to confirm that a short term low has been posted.

If March renews this month's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 20 day moving average crossing at $39.93.

Second resistance is the reaction high crossing at $42.68.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.