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

Comments for March 24, 2011

Looking ahead to Thursday by reflecting back on Wednesday’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

CRUDE OIL FUTURES HAD ITS BEST CLOSE IN 10 TRADING SESSIONS

ENERGIES: 3/24/11 Higher closes for crude oil, the rbob and natural gas while lower for heating oil. All of the energies remain in long-term uptrends helped along by uncertainty in the Middle East although there really is no shortage of oil the way I see it.  With that in mind crude had its best close in ten trading sessions as it continues to climb higher. Heat did close lower while trading in sideways choppy action since the beginning of March but still looking higher overall for now. The rbob has rallied up sharply lately back in a resistance area. It wouldn’t take much for all of the energies to top out in my opinion looking at the charts below but you can’t assume that will happen. THE TREND IS YOUR FRIEND is a common saying but oh so true! Gas now seems to have officially joined the other energies with its best high and close since early has its second highest close of its move. Gas also made its highest high and close since early February but now in a good good resistance area. BUY SIGNALS FOR CRUDE HEATING OIL AND NATURAL GAS. CALL FOR DETAILS!

Note: As of 8:30 am (Central) this morning, the Energies sector is down a composite 0.18%; despite higher trading in Natural Gas. Weakness in Heating Oil and RBOB is keeping the sector lower. View my Futures HeatMap b y clicking or typing this link into your browser: https://www.markethead.com/2.0.

001 chart

002 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 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.