Electronic Trading Continues Despite Hurricane Sandy

On October 29, 2012 by TradingDesk

All eyes are focused on Hurricane Sandy, with dire predictions for many residents of the East Coast. The storm has already prompted the first unscheduled market-wide shutdown of US Equity markets since September 2001. While the CME shut down the Nymex floor trading, electronic trading (where the majority of trading occurs anyway) is on a normal schedule, and action has been brisk.

RBOB is leading gains, the November contract is up 7 cents at the moment, while HO is up a nickel, as most PADD 1 refinery production is shuttered or reduced in preparation for the storm’s landfall. While a sharp price spike is possible – and perhaps likely – typically storm-induced moves are short lived. It’s impossible to say what the total impact of this storm will be, but historically storms along the east coast hurt refined fuel demand more than they impact supply. That said, short term outages all along the coast due to power loss and flooding are likely.

Charts continue to give slight favor to lower prices in the near future, but with all the uncertainty surrounding trading this week, a very full schedule of economic data, and a little election next Tuesday, volatility may be our only guarantee.

CLICK HERE for a PDF of this morning’s charts

 

 

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