Whiplash Trading Continues

On January 22, 2014 by TradingDesk

The 2014 pattern of whiplash trading continued Tuesday, as both RBOB and ULSD saw nickel gains in the morning wiped out in the afternoon. The record high spread between February and March trading months in ULSD was also cut by a third during the afternoon sell-off, despite a new round of winter storms hitting the east coast. The volatility carried over into cash markets across the US, as traders struggled to offset the swings in futures prices.

The price swings have left technical indicators in limbo, with little clarity on future direction. Prices are attempting to rally this morning, but unless yesterday’s highs are broken, it seems that we’re in for another period of choppy, sideways action.

CLICK HERE for a PDF of today’s charts

Market Update (3)

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