Whether you believe its Peak Oil or Speculation does anyone believe this to be a valid move in CL. My question is how can the price at which we value this commodity change $16 in two days? A side note, CNBC bothers me beyond belief. They have the oil tracker on the bottom of their screen. They have special programing focusing on oil. They talk about oil ALL day. IMO putting so much focus on the commodity only perpetuates its upward move. So I would like to hear some answers? I don't care which theory you subscribe to. How is this kind of super spike possible in a commodity?
1) The large price move is indicative of excessive speculation and extreme psychology. 2) Excessive media attention towards a stock or commodity generally occurs at long-term market peaks. 3) You can also have a situation where traders don't want to carry positions over the weekend which can spook out one side of the market. Today, the shorts are wanting to get out. 4) Trend following systems that buy markets that close on their weekly highs can also trigger a lot of (MOC) Market-On-Close buying.