Aimless Direction For Energy Trading

On February 19, 2013 by TradingDesk

We have another mixed bag of energy prices this morning, mirroring the conflicting action in global stock markets. RBOB is currently clinging to ½ cent gains, its lowest trading point of the holiday-extended session, while WTI is hitting its highs of the day, but just barely in the green. HO is down a little over a penny, testing support at its 14 day moving average. Volume has been extremely light, and perhaps the best way to describe the overall trade is “aimless”.

Likewise, global equities are conflicting. European shares are heading higher as German Investor confidence rose to the highest level in 2 years. Meanwhile, Chinese stocks had their biggest sell-off in 2 months after the government began its first liquidity draining operation (the opposite of the US FED’s QE programs) to cool inflationary pressures.

While it’s too early to call the end of the 2013 energy and equity rally, signs are showing that prices may be forming a top, and a 10-20% correction may be coming.

CLICK HERE for a PDF of this morning’s charts

 

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