Holding 126.15 and 126.45 levels short (July contract) and covered my 125.85 level at 125.05 for $.80 profit. Making some small profits while adjusting my cost basis of my core position higher with each new spike in crude - as stated before I am in for the $112's.
truly amazing..great trading...do you solely trade CL or also BZ, how about QM...how many contracts per trade and how many trades per day?...what time period usually..I.E. 9am-1pm EST...great post...please share more!
some encouragement: Asia Times May 6, 2008 By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $115 per barrel, if the futures price is even higher. As a result, over the past two years crude oil inventories have been steadily growing, resulting in US crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices. Compelling evidence also suggests that the oft-cited geopolitical, economic and natural factors do not explain the recent rise in energy prices - this can be seen in the actual data on crude oil supply and demand. Although demand has significantly increased over the past few years, so have supplies. Over the past couple of years, global crude oil production has increased along with increases in demand; in fact, during this period global supplies have exceeded demand, according to the US Department of Energy. The US Department of Energy's Energy Information Administration (EIA) recently forecast that in the next few years, global surplus production capacity will continue to grow to between 3 and 5 million barrels per day by 2010, thereby "substantially thickening the surplus capacity cushion". Dollar and oil link A common speculation strategy amid a declining US economy and a falling US dollar is for speculators and ordinary investment funds desperate for more profitable investments amid the US securitization disaster to take futures positions selling the dollar "short" and oil "long". F William Engdahl is author of A Century of War: Anglo-American Oil Politics and the New World Order. He may be contacted at info@engdahl.oilgeopolitics.net
Lately I have been trading only CL and I trade around the clock. Once I get my signal to enter this type of a counter-trend trade, I place standing orders above my initial entry level spaced out in a ratio that will fit the zone of price I am willing to trade within. I will keep trading around a core position until price moves in my direction needed for profits, or until I see an opposite signal in the cumulative delta - so far all looks good from a "micro" volume technical basis.
Thanks - I have been following the major and minor geopolitics of oil, the dollar, and the agenda of large global entities.
would you start a CL journal or is this best thread to view your CL insight?are you trading, 1,2,3,5 CL contracts at a time?
As of the overnight session I am now holding CL positions at 127.35, 127.05, and 126.75 - I covered my previous CL positions at b/e (126.15 and 126.45) that were remaining as we rallied back through those levels. Looks like we are in a good "wash and rinse" price move after the price drop yesterday. I have additional short orders resting at 127.85 and 128.35 that I will leave on until the close today.
I only took a very small portion of my overall position off the table with the big price drop at +$4.00 per contract - my main objective is to hold the majority of the core position for the $112 area and then start the significant covering at that level (scaling out). Price is currently still probing stops in the area of previous highs as we trade today, so we will see how the day ends going into the weekend.
I would do a journal if I was going to cover a method of trading over a longer period of time (and go more into the details of my method). I trade 10 to 20 lots when I trade the CL.