Oil positioning ahead of FOMC and election

My individual market views are detailed in the table at the beginning of the newsletter. I am maintaining my oil views as neutral as the market is trading with a high degree of uncertainty. I also expect many participants to continue to move to the sidelines ahead of the Nov. 2/3 Fed meeting as well as the very important Nov. 2 mid-term elections in the U.S. I have maintained my bearish view for Nat Gas as the fundamentals continue to be bearish after yet another projection for an above average injection into storage this week. However, I am raising the caution flag that we could see some additional short covering over the short-term, especially if Thursday’s EIA report is not as bearish as it is expected to be. I strongly suggest that all short side NG trades now be managed with tight, trailing stops as sudden prices reversals can happen at any time.

Currently most risk asset prices are lower as shown in the EMI Price Board table below.

Current Expected Trading Range

Expected Trading Range

10/27/10

Change

Low

High End

From

End Support

Resistance

6:57 AM

Yesterday

Dec WTI

$81.86

($0.69)

$71.00

$84.50

Dec Brent

$83.01

($0.65)

$70.00

$85.50

Nov HO

$2.2329

($0.0171)

$2.0500

$2.3500

Nov RBOB

$2.0812

($0.0128)

$1.8000

$2.2000

Nov NG

$3.295

($0.059)

$3.700

$4.000

10 YR Treasuries

125.30

(0.42)

118.00

128.00

Dow Futures

11,097

(27)

10,000

11,200

US Dollar Index

77.995

0.085

76.500

80.150

Euro/$

1.3825

(0.0019)

1.2750

1.4100

Yen/$

1.2273

0.0003

1.1400

1.2300

Dominick A. Chirichella

dchirichella@mailaec.com

Energy Market Analysis is published daily by the Energy Management Institute 1324 Lexington Avenue, # 322, New York, NY 10128. Copyright 2008. Reproduction without permission is strictly prohibited. Subscriptions: $129 for annual orders. Editor in Chief: Dominick Chirichella, Publisher: Stephen Gloyd, Editor Sal Umek.

EMA has authorized Futures to publish its report once a week on Wednesday prior to the EIA release. For information on how to receive the report everyday look below.

PH: (888) 871-1207

Email info@energyinstitution.org

Subscribe here Free Trial Here

Information and opinions expressed in this publication are intended to provide general market awareness. The Energy Management Institute and the Energy Market Analysis are not responsible for any business actions, market transactions, or decisions made by its readers based on information published in this report. Readers of the Energy Market Analysis use this market information at their own risk.

This message and any attachments relate to the official business of the Energy Management Institute ("EMI") and are proprietary to EMI. This e-mail transmission may contain information that is proprietary, privileged and/or confidential and is intended exclusively for the person(s) to whom it is addressed. Any use, copying, retention or disclosure by any person other than the intended recipient or the intended recipient's designees is strictly prohibited.

About the Author
Dominick A. Chirichella

Energy Market Analysis is published daily by the Energy Management Institute 1324 Lexington Avenue, # 322, New York, NY 10128. Copyright 2008. Reproduction without permission is strictly prohibited. Subscriptions: $129 for annual orders. Editor in Chief: Dominick Chirichella, Publisher: Stephen Gloyd, Editor Sal Umek.

EMA has authorized Futures to publish its report once a week on Wednesday prior to the EIA release. For information on how to receive the report everyday look below.

PH: (888) 871-1207

Email info@energyinstitution.org

Subscribe here Free Trial Here

Information and opinions expressed in this publication are intended to provide general market awareness. The Energy Management Institute and the Energy Market Analysis are not responsible for any business actions, market transactions, or decisions made by its readers based on information published in this report. Readers of the Energy Market Analysis use this market information at their own risk.

This message and any attachments relate to the official business of the Energy Management Institute ("EMI") and are proprietary to EMI. This e-mail transmission may contain information that is proprietary, privileged and/or confidential and is intended exclusively for the person(s) to whom it is addressed. Any use, copying, retention or disclosure by any person other than the intended recipient or the intended recipient's designees is strictly prohibited.

Comments
comments powered by Disqus