Rbob
RB setting up for shortingI'm waiting for confirmation bar to entry a short position. Negative indications are starting to appear.
USDCAD Pauses as Crude Gains Over 20 Percent from LowsThe USDCAD pauses as crude gains over 20 percent from the recent lows, while having the best three-day gain in nearly 30 years.
Upward momentum in crude prices will help the Canadian dollar rebound slightly, but the fundamentals still remain bearish. In all reality, $47 per barrel will not rid the bearish fundamentals within the energy space.
While keeping it all in perspective, the pop in crude prices is due to a series of headline factors as crude traded near levels not seen since the financial crisis.
First, the Energy Information Administration (EIA) reported that U.S. crude production declined in July. Falling a to a mere 9.3 million barrels, production is roughly 300,000 barrels from the peak. For the first half of 2015, an average of 9.4 million barrels were produced. That's not that optimistic.
There was also a headline suggesting that OPEC may have a meeting with producers to determine a "fair" price for crude.
What do I expect?
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Speculators try to front-run such events hoping to ride the momentum. These momentum pops tend to be self-sustaining as traders begin to cover their levered-shorts.
The market saw the same thing earlier in the year only to engage in another "transitory" breakdown.
The USDCAD is up big, and price action will likely test the consolidation channel, which will act as the first line of support. If price action closes underneath it, look for the pair to test support at 1.3090/1.31.
The speculative ride could last near-term, where the 200-4H EMA would be a great downside target. The 4H +/- DMI is showing a possible bearish convergence that would further suggest more downside.
Key resistance levels will act as upside target is crude begins to unwind, considering that USDCAD does not completely unravel. Minor trend support looks to be broken, and bulls will have to attempt to get back over that hump.
Pullback Due for RBOB Gas?Gasoline has seen a crazy rally in the first six weeks of 2015, after a record number of daily declines; but, considering the continued oversupply in both crude and gasoline inventories, RBOB could look to pullback.
No longer in an oversold condition on the daily chart, gas has been unable to close above $1.6192, as well as a minor descending trend line.
So far, price action has been able to find support on the 23 percent Fib. from the recent bottom to rally top. If gas cannot exceed and breakout of the descending trend line, I look for gas to retest $1.46 before moving lower to $1.423.
According to EIA data, gasoline inventories are well above the 5-year average and have been since late fall. The next few months typically see less demand for gas due to seasonality, and I am uncertain whether or not demand will greatly pick up heading into summer.
In the near-term, I expect prices to remain low. Although, a breakout from resistance could send prices to $1.680.
PEIX PACIFIC ETHANOL SLOW STEADY ATTEMPT TO WAVE ITS WAY TO ATHIF A COMPANY HAS CONTINUED GROWTH IN A CHANNEL WITH FLAWLESS STRENGTH AND A NICHE MARKET FOR A PRODUCT USED AS NECESSITY IN AN ECONOMY STRUGGLING TO FIND PRODUCTION YET PRODUCE OIL AND GAS WHICH IN TURN GASOLINE RISING AT THE PUMP AND CORN BASED ETHANOL OUR ATTEMPT TO GO GREEN IN A DIRTY BLACK FOSSIL FUEL LOL. THE GOVERNMENT MANDATES A PERCENTAGE IN EACH GALLON OF GAS AT THE PUMP MEANS CONTROLLED COMMODITY THAT EQUALS CONTROLLED GROWTH IN PRICE BY DEMAND AND INFLATION WILL LEAD TO HIGHER PROFIT MARGINS THE STOP I WOULD USE IS A TRAILING DAY BY DAY XYB NUMBER WHICH IS HIGHER THAN THE INDICATOR GAVE US OUR BUY WINDOW IT WILL ALSO GIVE US A SELL STOP TO ENSURE BREAKEVEN HOWEVER I WOULD PLACE IT BELOW THE XYB BY A DIME EACH DAY.
TO ENSURE THAT THE PROFIT IS MAXIMIZED I WOULD USE THE WXT DAILY ONLY ON A CLOSE ON OR WITHIN FIVE CENTS OF THE HIGH OF DAY WITH LOW VOLUME ESPECIALLY. YOU COULD THEN BUY BACK AT 8-10EMA IF IT HOLDS THERE AFTER A TWO TO THREE DAY SELL OFF YOU COULD WRITE CALLS ON IT IF IT CLOSES ON WXT THAT DAY AT CLOSE INSTEAD OF SELL AND SHORT TERM EXPIRATION SO YOU COULD BRING MOST PROFIT OFF COST BASIS INSTEAD OF A SWING TRADE DEPENDING ON POSITION SIZE THIS USUALLY OCCURS IN THREE DAYS OR SO FOR SELL OFF TIME FRAME TO SUPPORT LARGER BLOCKS SELL 70% OF POSITION THEN BUY BACK ON EMAS SO THATS THREE OPTIONS ON HOW TO MAXIMIZE TRADE
1LONG TERM FOR ALL TIME HIGH YOU WRITE CALLS AT WXT ON CLOSE
2 SWING TRADE SELL OFF 70% OF POSITION WRITE CALLS ON 30% THEN BUY BACK ON 8-10 EMA SUPPORT HOLDING FOR DAY OR TWO THEN BUY BACK ON UPTICK DAY COVER CALLS THEN REAVG AND REPEAT TRADE AS LONG AS NECESSARY
3 PURE TRADE SELL OUT IN FULL AT WXT ON FOLLOWING DAY ON DOWN TREND THEN FULL BUY BACK ON STABILZATION AT 9 EMAS REPEAT AS MANY TIMES AS REQUIRED TO CAPTURE HIGHEST PROFIT MARGINS USE LEVERAGE AFTER BEING UP 15% TO FULLY CAPTURE DOUBLE PROFIT POTENTIAL.
This is a pick from the master BILLY 4th of JULY 90 percent correct on his buys... MENTOR TO JACKIE MOON AND MYSELF DOES HE EXSIST OR IS HE JUST A CONCEPT THAT THE WORLD CHASES HOPING TO UNDERSTAND HOW THAT ELABORATE FIXTURE WE CALL HIS BRAIN WORKS ALL THIS CREATED IN THE BLINK OF AN EYE ..... BUY BUY BILLY 4th OF JULY ALWAYS BUY ALMOST ALWAYS SELLS PAST HIGHS
I attached the links to show how the sell from WXT occurs then the support at 9 ema 8-10 stabilizes the 9 initiates buy backs
