S&P Remains Weak

Given the magnitude of last week’s decline and the lack of follow-through in the recovery on Friday, there is potential for further market decline.  With this in-mind we will be watching downward momentum early in the trading session, to gauge the potential for further profitable trades from this market correction.

We Remain Long November Crude

This week the EIA (Energy Information Administration) reported 1.9 million barrels were added to supply which surprised the market who expected a draw-down in  supply.  Despite this, we remain Long November Crude as our expectations are that prices will continue their upward march, as the  Iranian sanctions soon take effect.

Oil Volatile Ahead of OPEC Meeting

It was a volatile session Thursday in the Crude market as the November contract reached new Highs of 71.35 before falling back and Closing at 70.32.    Much of this volatility is likely due to traders squaring positions ahead of this Sunday’s OPEC meeting in Algeria and the Baker Hughes rig count due out later today.

We continue to trade this market to the Long side.