Oil hit $100 a Barrel , price plunge for the new year --> $740 profits
5 min Emini Nasdaq 100
Hi,
How is it going? Market had a bad start, price was heavy on the upside and it just went down and down... today's trade is more based on price action than anything else.... I did not enter the market immediately... at 10:25.. there was a slight rebound and if price stage a comeback, there was still a chance of an uptrend... but... price simply broke it... this is my first signal... but I did not enter since I needed more conviction .. All my indicators where "underwater" in the oversold region...
Then at 11:15, when price cut through 2090 which is a support line... I shorted 1 contract at 2085... I am cautious on this trade as all my other indicators were already "underwater"... its not unusual for price to turn up anytime soon....
I only shorted another 2 more contracts at 2075 and exited at 2066 when stochastics cut up from the oversold region.. notice that shortly after, Short-term MACD also cut its signal line...Profits = $740.
Fundamentals:
Crude Futures Hit Record $100 a Barrel on Supply Concerns After Violence Breaks Out in Nigeria
Crude oil prices briefly soared to $100 a barrel Wednesday for the first time, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will outstrip supplies.
Surging economies in China and India fed by oil and gasoline have sent prices soaring over the past year, while tensions in oil producing nations like Nigeria and Iran have increasingly made investors nervous and invited speculators to drive prices even higher.
Violence in Nigeria helped give crude the final push to $100. Bands of armed men invaded Port Harcourt, the center of Nigeria's oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel. Word that several Mexican oil export ports were closed due to rough weather added to the gains, as did a report that OPEC may not be able to meet its share of global oil demand by 2024.
Light, sweet crude for February delivery rose $4.02 to $100 a barrel on the New York Mercantile Exchange, according to Brenda Guzman, a Nymex spokeswoman, before slipping back to settle at a record close of $99.62, up $3.64.
Oil prices are within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.
The White House on Wednesday said it would not release oil from the nation's strategic reserves to drive prices lower.