What’s Up, What’s Down: Spotlight on Energies
Comments for October 4, 2011
Looking ahead to Tuesday by reflecting back 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.
ARE THE FUNDAMENTALS SHIFTING BEARISH FOR THE ENERGY COMPLEX?
ENERGIES: 10/4/11 . Lower for the crude and heating oil along with the rbob and natural gas again. Look at those weekly charts below so you can see why I’ve said for a while, that the Crude looks heavy and seems to be, in my opinion, topping out. With the U.S. sitting on millions of barrels of crude oil, making it the third largest country with oil and the improvements in automobile efficiencies, I believe oil prices in the long run will have to deal with these fundamentals. Of course there should be many blips along the way even if I’m right. The crude made its worst low and close since July 2009, heat since January and the rbob August 9th. Crude has heavy resistance from 85 to 90 basis the November contract. Gas made another new CONTRACT LOW AND CLOSE having been in a beautiful down-trend since July 2008 helped by approximately a four year supply of gas. SELL SIGNALS FOR CRUDE, HEAT, THE RBOB AND NATURAL GAS. CALL FOR DETAILS!
The NYMEX will be phasing out the current heating oil (HO) futures contract and replacing it with a New York Harbor Ultra-Low Sulfur Diesel futures contract. Download my report which compares and contrasts these two energy product contracts, and use the report for a better understanding of this segment of the energy futures complex. https://www.zaner.com/3.0/energyblogheat.asp
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.