Energy Futures Update

News & commentary on Energy Futures markets including Crude Oil WTI, Crude Oil Brent, Heating Oil, Gasoline RBOB, Natural Gas & more.

Energy Futures Update is a blog dedicated to bringing updates, news and commentary on energy futures markets including Crude Oil WTI, Crude Oil Brent, Heating Oil, Gasoline RBOB, Natural Gas and more.

This blog is brought to you by Zaner Group, one of America's oldest family-owned and operated futures and forex brokers.  Zaner provides a wide range of services from research and recommendations to the execution of all your futures needs.

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Futures, options and forex trading is speculative in nature and involves substantial risk of loss.  These recommendations are a solicitation for entering into derivatives transactions.  All known news and events have already been factored into the price of the underlying derivatives discussed.  From time to time persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives.


02/25/2015 Crude has a buy signal

Posted on 2/27/2015 1:12:23 PM by: Larry Baer, Market Strategist @ Zaner. 312-277-0112.

SEE CHART

 


02/12/2015 Crude has a buy signal

Posted on 2/19/2015 1:19:17 PM by: Larry Baer, Market Strategist @ Zaner. 312-277-0112.

SEE CHART

 


NO UPDATE TODAY

Posted on 2/18/2015 6:24:43 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

EIA GAS STORAGE

 

Higher closes for the crude and heating oil along with the rbob and natural gas but not as good as it seems. Yes, the energy complex ralled sharply from its session's lows but the closes were just okay. In fact, the energy complex had a decent selloff from the pit's close making their settlement prices look better than the last prices on the electronic close. However, there were no new contract lows made today which could still lead to higher prices in the short term. I am not smart enough to tell you when energies will bottom out at this time.. Natural gas also had a nice rally off its lows while in its nearest resistance area at this time. SELL SIGNALS FOR CRUDE AND HEATING OIL ALONG WITH THE RBOB AND NATURAL GAS. CALL FOR DETAILS!  For additional charts, quotes, news, commentary & more, sign-up for a FREE 30-day trial to Market head.Com

 

 

 

 


NO UPDATE TODAY

Posted on 2/18/2015 6:24:34 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

EIA GAS STORAGE

 

Higher closes for the crude and heating oil along with the rbob and natural gas but not as good as it seems. Yes, the energy complex ralled sharply from its session's lows but the closes were just okay. In fact, the energy complex had a decent selloff from the pit's close making their settlement prices look better than the last prices on the electronic close. However, there were no new contract lows made today which could still lead to higher prices in the short term. I am not smart enough to tell you when energies will bottom out at this time.. Natural gas also had a nice rally off its lows while in its nearest resistance area at this time. SELL SIGNALS FOR CRUDE AND HEATING OIL ALONG WITH THE RBOB AND NATURAL GAS. CALL FOR DETAILS!  For additional charts, quotes, news, commentary & more, sign-up for a FREE 30-day trial to Market head.Com

 

 

 

 


Options play: Can crude prices go sideways for days, possibly weeks?

Posted on 2/17/2015 2:15:57 PM by: Matt McKinney, Market Strategist @ Zaner. 312-277-0115.

Direct-312-277-0115

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

 

Options play: Can crude prices go sideways for days, possibly weeks?

Right on the close of the pit trading session on the Nymex exchange in New York City, the market dropped roughly 79 cents/barrel (2/17/15).

 

Fundamentally, three times this April crude oil market has tested about $55.05/barrel on the upside and twice the market has tested the lower end of the range at about $48.29/barrel over the last several days. One weak fundamental reason that happen to come across in my research was that a weaker USD pushed crude prices to a higher close today (2/17/15). Not a very strong case considering that the USH5 is only down about 15 cents, not much to write home about, let alone push any other markets like crude up. While crude oil did close up on the day, to me it was a weak close. The market fell quickly into the pit close, almost like sellers were rushing to beat the closing bell in New York. Again, that roughly 50 cent drop that occurred during the last 15 minutes in the pit was really a 79 cent drop when crude fell from a high of $54.15 to a low of $53.36. Then there was a quick bounce at the close of about 29 cents. To me that is a weak close within the trading range that the market has set over the last several days.

More fundamental factors that I feel will have an impact on the crude market via the USD is the house of cards we know as the euro zone. Greece is playing games with the EU, flat out I believe this to be true. You cannot get blood out of turnip. It seems almost inevitable that Greece will not hold up it's already agreed upon terms and default causing a major drop in the 6E, pushing the USD higher in a big way. Then the outside pressure of the stronger dollar will help crude prices fall in my opinion. Also remember that we are sitting on extremely high supplies of crude here in the U.S. if not all-time record highs. We have "fracking" to thank for that, the best thing that has ever happened to this country.  

However, using the "measured move" theory that prices move in equal increments crude could go sideways for as long as it went down. If you believe in "measured moves" then it took crude oil 7 months to go down from a high of about $106/barrel to a low of about $46/barrel. So if this theory holds true then crude could trade sideways for 6 months-right? Right!

 

The first thing that I notice is the three day moves crude makes each time it reaches the top of the range. The next item I see is the fact that this market has gone from a "SUPER-TREND" down to a sideways trading market. Now, over the last week roughly, the market has been trading between about $54/barrel to $48/barrel. My favorite technical indicators mentioned above can tell me where the different layers of support and or resistance are. They can tell me which direction the trend of the market is and how strong the trend is. They can tell me if the market is oversold or overbought, just to mention a few items.

Most importantly, is the dark black lines that I have applied to the CLJ5 daily crude oil chart below. It indicates to me the top and the bottom of the range-roughly. Nothing is etched in stone especially with crude oil as it  in my opinion, has a tendency to overdue itself on the long and short side of things. It should be interesting to see how long this three day pattern to the top of my range lasts. If it has any validity at all then tomorrow should be a lower day.

 

Daily crude oil chart

 

OPTION PLAY:

If the crude oil market continues along the lines of the "measured move" theory then the obvious play is to sell calls or puts or both. At the same time maybe a play could be to buy calls and puts waiting for the break out of the range, closing out the other side ASAP and letting the winning side run. Of course, my 3 to 1 strategy could work along the lines of a break out of this sideways trading range.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. I believe that we are on the verge of lots of upcoming trends. So get in touch with me and I'll show you what could be right around the corner in terms of trending markets and how to trade them. There could be upcoming trends in the grains, indices, financials, precious metals, softs and more.

 

 

FREE QUOTE- When Michael Jordan was told by Tex Winter, that there is no "I" in team, Michael Jordan smiled and said , "yeah, but there is an I in win" - Michael Jordan and his coach Tex Winter 

 

 

 

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.


NO UPDATE TODAY

Posted on 2/11/2015 6:19:04 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

EIA GAS STORAGE

 

Higher closes for the crude and heating oil along with the rbob and natural gas but not as good as it seems. Yes, the energy complex ralled sharply from its session's lows but the closes were just okay. In fact, the energy complex had a decent selloff from the pit's close making their settlement prices look better than the last prices on the electronic close. However, there were no new contract lows made today which could still lead to higher prices in the short term. I am not smart enough to tell you when energies will bottom out at this time.. Natural gas also had a nice rally off its lows while in its nearest resistance area at this time. SELL SIGNALS FOR CRUDE AND HEATING OIL ALONG WITH THE RBOB AND NATURAL GAS. CALL FOR DETAILS!  For additional charts, quotes, news, commentary & more, sign-up for a FREE 30-day trial to Market head.Com

 

 

 

 


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