Crude Oil: Who is buying and selling, and what does it all mean?

Market Pulse: Nov. 1, 2010

Crude Oil: Who is buying and selling, and what does it all mean?

December 2010 crude opened last week at 82.01 and closed the week at 81.43. This contract month on a daily chart shows a high hit at 93.55 on May 3, and a low hit that same month at 73.17 on May 26. That is a $20,380 move based on one contract. Not bad if you were on the right side of that trade. So what is ahead for crude? The "big news" everyone is waiting for is exactly what Ben’s QE2 will be. If higher than expectations, the U.S. dollar drop will send crude higher. The daily chart below does show on ADX that the trend has weakened. The weekly does show a longer term uptrend is in tack. However, in strong trending markets we always see periodic profit taking. When the "huge" money traders do this, the market will respond accordingly.

Proceed to Page 2 for the latest COT data...

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