If you read my post yesterday about the the curve ball that has come into light yesterday, then you were aware that inventories where due today. If you looked at my chart yesterday the trend lately was in an increase in oil supply and that is exactly what you got. Of course I warned you not to trade oil as the news in the financial sector might cause oil to hold its ground which it did closing around $42.05. The initial trade when the numbers came out put selling pressure on traders. Watching SCO ( Proshares Ultra Short Crude Oil) it had a huge range today. This is what I was trying to avoid. I mean I love volatility but this thing was moving quick. It had a day low of 31.88 and a day high of 36.90, but finished at 34.48 up about .41c. Weekly unemployment numbers come out tomorrow and durable good orders for December. This might put more pressure for oil for breaking below $40. Given the news that came out today, oil held it's ground but nonetheless will continue deteriorating from here. I don't feel that these two economic figures that are coming out tomorrow are going to push oil up. Both reports are due out at 8.30am EST as well as new home sales if that means anything at 10a EST. Look for oil to continue losing ground tomorrow, but beware of holding it overnight with Friday being a big day. Don't forget GDP, Exxon Mobil, and Chevron reporting on Friday.
Posts
No comments:
Post a Comment