Whiplash Trading Poised to Continue

On February 7, 2014 by TradingDesk

Energy and equity markets attempted to rally overnight, and have seen some wild swings in the past few minutes following the release of the January non-farm payroll report, which showed another month of stagnant employment growth. The wild action appears to suggest that the 2014 pattern of whiplash trading is poised to continue.

RBOB gasoline futures tested $2.70 overnight – just 3 days after briefly trading below $2.60 – and have the potential of forming a bullish “W” pattern targeting $2.85 should this resistance level fall. If we are in fact witnessing the start of a spring rally, historical data (specifically an average increase of 25% or more) suggests prices may rise to $3.25.

ULSD prices continue to consolidate around the $3 mark, torn between an extremely tight prompt market and forward values trading as much as 45 cents below the march contract price. The near term outlook remains mixed, but longer term charts show that the upward trend from 2012 is still intact and another push to $3.20 is possible.

CLICK HERE for a PDF of today’s charts

Market Update (3)





Total nonfarm payroll employment rose by 113,000 in January, and the unemployment rate was little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today.  Employment grew in construction, manufacturing, wholesale trade, and mining.

Table A

Comments are closed.