Today’s price action was chop and slop but not short of opportunities. The big event in Crude Oil was the inventory report at 9:30 which sent just about everything related and even some things not related into the stratosphere. Once the market realized it had achieved a $2.00 per BBL increase, the market slammed down as rapidly as it had risen. Par for the course, I say.
It is to a point now where I don’t think in terms of substance, but rather events. There are traders who are pushing the markets higher or lower just on the event itself regardless of the content of the report. So, I wait for the event and watch for the trade to unfold. Almost always, there is a false breakout one direction like today’s downward move at 10:20 eastern. That was followed by a run straight up lasting about 30 minute beginning at 10:30 and by 11:00 it cooled and the market came back to the original trend.
The jump in price in Crude sent Soybean Oil skyward which pushed Soybean prices higher. The Indexes took off and then by the afternoon everyone was back to the old grind. Maybe tomorrow will be another day like today with natural gas Inventory out at 9:30 Central.
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