What’s Up, What’s Down: Bearish on the Energy Sector

Comments for Tuesday, May 18, 2010

Looking Ahead to Today by Reflecting Back at Monday’s Price Action


Higher closes Monday for natural gas while lower for crude and heating oil, along with the rbob. Sharply lower closes for crude (lowest low and close since early February), heat (lowest low and close since the middle of February) and the rbob (lowest low and close since the middle of March). Heating oil finally gave me a SELL SIGNAL but it’s not worth taking a short at this time because using proper money management techniques are almost impossible to do until heat has a good-size retracement first. All of the energies have been retracing over the last week but should be sold on rallies. Gas has been attempting to base lately even after the Wall Street Journal had a nice article on how gas is procured at a much greater rate with new technology. I am now actually close to a possible buy signal! SELL SIGNALS FOR THE CRUDE OIL, HEATING OIL AND THE RBOB AND NATURAL GAS. CALL FOR DETAILS!

Light Crude Oil Chart

Heating Oil Chart

RBOB Chart

Natural Gas Chart

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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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