Monday’s legal holiday saw zero price movement in the Globex stock markets. Tuesday 2/17 was all-morning chop inside the open range, followed by a brief spurt up in the noon hour, followed by hours of more dead-wedging all afternoon. In other words, hours of staring at no-range chop.
Crude oil futures made a $2,000+ per each contract move lower in the morning, followed by an even greater $2,000+ move higher in the afternoon. In other words, all kinds of profit potential thru myriad potential trade signals which ran for distance.
Wednesday’s session was a rollover day for crude oil futures as March transitions to April in the monthly process. CL traders can opt to work the current front-month contract or the new contract on these days because volume is roughly split between them. Even if the current month has less volume, it often makes bigger directional moves. So take your pick, either choice is fine.
Not really much more to discuss of any value market-wise than that. Crude oil is making big swings on lower than usual volume, stock index markets are contracting and chopping sideways most of the time in their pit sessions.
We’ve all seen this many times before, following a corrective selloff. Someone(s) from the Fed speaks out in public about dovish interest-rate change bias and stocks immediately turn straight up and keep gap-drift-chopping higher on waning volume. Then all of a sudden, one session comes along and sells off great distance lower to erase an entire week or two of congestive upwards chop.
Odds are that the next sharp decline to correct a couple week’s “magic hands” ascent will arrive sooner than later. Until then, chopwards upwards onward she goes. Meanwhile, crude oil futures will be all over their charts, both directions, often multiple times daily.
For more daily updates from Austin, visit his blog at Coiled Markets.