Wednesday, 5 October 2011

Crude News

I've never been much on the Fundamentals as a way to read the market. Most of the language these Fundamentalists spout out are well over my head (at least for the moment anyway). But don't get me wrong here, I do believe that the Fundamentals play a part in determining future price action. Just at the moment I'm more focused on the Technical Analysis of future price action.

There are a couple reports and news articles I'll look over, and use for my analysis. I found that a number of these reports and important news events are conveniently placed on the Bloomberg site. They call it the Economic Calendar, and this is where I get my Fundamental information (see My Top Websites on the right sidebar).

I found that out of all of news/reports given on the site the EIA Petroleum Report is the most significant in what will happen to the price action of Crude Oil. Often the price will fluxuate rapidly at 7:30am (10:30am EST) when the report is released. One can get in there when the report is released and go with the price action, but often I found that the price moved rapidly just before the report is released, meaning some people are getting this information earlier than the rest, or, and more likely, some traders are assuming where the price will go. Because of the latter point the price may go in the opposite direction of what the report says. This doesn't happen all the time, but it is something to consider when jumping in. So, be very careful when this report is released, and follow your indicators afterward on a smaller timeframe.