What’s Up, What’s Down: Spotlight on Energies

Comments for June 10, 2011

Looking ahead to Friday by reflecting back on Thursday’s trading

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors

IS CRUDE OIL FORMING A BEAR TRIANGLE?

ENERGIES: 6/10/11: Higher closes yesterday for the crude and heating oil along with the rbob but lower for natural gas. The crude, heat and rbob are still neutral for me but the crude still looks like its in a large BEAR TRIANGLE while the heat, after making its best high since May 5th and best close since May 4th again continues to be in a resistance area. The rbob and crude also have been in a choppy  trading range over the last 1-2 months. Gas, on the other hand, had a temendous range making its highest high since August 9th, 2009 before settling sharply off its highs ending up with its lowest low in a week. This reversal type action has caused me to stand aside and I feel longs should lighten up or get out and wait to see if gas can take out today’s highs first before looking for a place to get back in.

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Sept/June rollover for stock index futures starts this Thursday, June 9. See my HOT TOPICS at my website (https://www.zaner.com/3.0/market_information/hot_topics.asp) for more information.

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 or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.