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

Comments for February 8, 2011

Looking ahead to Tuesday by reflecting on Monday’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

ENERGIES: 2/8/11: Higher closes yesterday for the rbob while lower for the crude, heat and natural gas. The crude continues to have trouble breaking through a strong resistance area with its third straight lower close keeping my sell signal intact. The 8800 area basis the April contract is the key area to hold as seen below. Heat also settled lower but continues to remain a buy along with the robob which closed higher. The rbob does have a potential top forming however. Natural gas settled sharply lower making its worst low and close since  Dec. 27th giving me a SELL SIGNAL as heavy stocks continue to weigh on any rallies so far. BUY SIGNALS FOR THE HEATING OIL, RBOB AND NATURAL GAS. SELL SIGNAL FOR CRUDE OIL. CALL FOR DETAILS!

001 chart

002 chart

003 chart

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.