We reported the move on the Crude Futures last week on this news data. It has been giving great news trades. Unfortunately we was not around to trade this last night as it is release just around dinner time here in London. However it really should be focused on more, but since the data does not always get released on time, perhaps it is best handled with a straddle or bracket order. This number is seen the evening before the main numbers out of the Department of Energy or DOE, which are the most important weekly energy inventory numbers. This number can often give the market a clue as to what the DOE will report the next day, however the numbers frequently come out conflicting with 1 high and the other low, and DOE takes preference - it is a bit like
Tuesday, November 09, 2010 21:30:05
*API PETROLEUM INVENTORIES: CRUDE: -7.4M V +1ME; GASOLINE: -3.5M V -1ME; DISTILLATE: -4M V -2ME; UTILIZATION: 84.3% V 82.1%E
- Cushing crude inventory: -950K to 31.86M barrels
Risk aversion had hit the markets during the New York session and equities & commodities were all lower and the US Dollar was stronger...This report occurs about half an hour after the New York Stock Market close, so liquidity can be low, but it is not watched by many, and as you can observe in the chart. A bracket order 10-15 pips above the market, or possibly entering after the initial 10 second bar would have still yielded the trade at least 40 ticks without 1 red bar. The numbers show that there was a draw on petroleum inventories, expected at +1 but coming in at -7.4, a very big deviation. Less supply equals higher prices and that is why the Crude Oil Futures Contract went higher.
No comments:
Post a Comment