One Headline Triggers A Variety of Mechanical Trades

On March 26, 2012 by TradingDesk

Friday’s trading session was dominated by a single headline suggesting that Iranian oil imports had dropped sharply in March. On its own, this wasn’t really news, but the headline triggered a variety of mechanical trades, sending WTI up $3 in less than 3 minutes. RBOB rose 7 cents in the first few minutes following the headline, setting new highs for the year, only to fall 6 cents in the next 5 minutes.

Prices have risen again this morning, all in the past 20 minutes, as a speech by Ben Bernanke has traders anticipating more free money courtesy of the FED. RBOB is breaking out of its March trading range, to the upside, and is currently less than 8 cents from last year’s high. WTI and HO look less bullish technically, but still appear set to test the upper end of their trading ranges, after failing to break through the bottom end last week.

The NYMEX has announced plans to keep the HO futures contract with an ULSD spec beginning next April, scrapping plans to convert to a new futures contract once the heating oil specs expired.

 CLICK HERE for a PDF of this morning’s charts

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