Errors In Crude Oil Inventory Data
Posted on 24. Mar, 2010 by Founder in Blog
The Dept. of Energy found documents to uncover what they said were errors in the Energy Information Agency’s weekly inventory report:
“Including one (last) September that was large enough to cause a jump in oil prices, and a litany of problems with its data collection, including the use of ancient technology and out-of-date methodology, that make it nearly impossible for staff to detect errors.”
Oil prices this morning are already down more than $1 to around $81 a barrel. Asia also put out a report which showed a larger-than-expected jump in U.S. crude inventories last week. Here is the OIH path we think it will take.
OIH Oil Service Holders ETF
Posted on 18. Mar, 2010 by Founder in Blog
Is it me or does the OIH oil service holders ETF look like it’s ready to breakout higher. We are getting close to the summer months which means higher gas and oil prices in general…
Energy Sector Ready For A Breakout?
Posted on 04. Mar, 2010 by Founder in Blog
After chopping in a sideways range for the past six weeks, the energy sector may be poised for a breakout above its pullback consolidation that carries it back to its January 2010 high. If you do think we will see a continued breakout – which we don’t considering the Oil Inventory Report yesterday – then playing the OIH may be your best bet. Remember that we mentioned this pattern in OIH nearly a week ago now stating the the higher breakout would not go much higher.
OIH Oil Service Holders Chart Analysis
Posted on 26. Feb, 2010 by Founder in Blog
The OIH is something we haven’t seen in a bit on this blog but it’s worth a quick look here as it’s forming a very clean triangle pattern on the daily chart. The best move would be to wait for a breakout – hopefully lower – and then trade that. Notice that it’s already broken a major trendline so a breakout higher would no go far.
OIH – Oil Service Holders Near Support
Posted on 10. Feb, 2010 by Founder in Blog
The OIH (oil service holders) is near support and bracing for another down day after a report showing unexpected growth in U.S. crude inventories sent Oil lower in early trading. Per the chart below, there isn’t much room to go before it hits support – which may be a good thing for Oil and commodity traders. From there we have to see if support holds or not?
OIH ETF Trading Chart And Forecast
Posted on 01. Dec, 2009 by Founder in Blog
OIH ETF Trading Chart and Forecast – OIH showing clear relative weakness to the broad market right now. It broke support of a 5-month uptrend line last week, and its 20-day exponential moving average has crossed below the 50-day moving average. That convergence now acts as resistance just above the high of the past five days. All bets are off however for a short entry if the major indices build on yesterday’s accumulation. Here’s the daily chart of OIH.
Commodities Trading During Expiration Week
Posted on 11. Nov, 2009 by Founder in Blog
Commodities trading during expiration week and be very tricky. Recently commodities have resumed their rally as Gold futures (/GC) hit new highs yesterday as demand for this precious metal continues. Oil (/CL) and Natural Gas (/NG) futures have traded in a tight range over the past few weeks with no real direction holding for long. Here is a look at the Morgan Stanley Commodity Index (CRX) and where we think things are headed.
As these commodities trade at high levels, underlyings such as Freeport –McMoRan (FCX), Caterpillar (CAT), Gold Miner’s ETF (GDX), and Oil Services ETF (OIH) are also trading at yearly highs. Demand from China and other emerging markets continues to fuel the rise in prices for many of these commodities and stocks. With little market news being released this week, we will turn our focus to next week’s release of the Producer Price Index (PPI) on Tuesday. November Option expiration is 10 days away so next week could be a volatile one – so be careful out there.
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