Impact of Rollover Day & Weekly Inventory Report on Crude

We have taught and talked about two fundamental behaviors specific to crude oil futures for a couple of years now: the trend-day phenom around monthly rollover, and the weekly inventory report. Both of those behaviors were discussed in the CM EagleTeam training video segment posted online for all to learn from and enjoy.

3/22/2012

Rollover Day
Each month around the 19th to 21st (depending on weekend and holiday factors) the CL will make a directional push for 300 – 500 cents or more from midnight to 4:15pm est. As noted in the video, market media pundits will attribute that monthly occurrence to whatever inane news (noise?) is handy at the time. But all we need to know is that it will happen, regardless.

Tuesday 3/20 saw price action peak near 108.20 and trough near 105.70 for a 250-cent intraday range. Somewhat muted for this monthly cycle… but still plenty generous to trade. Afternoon short signals via CM Patterns confirms are shadow boxed in yellow, with (pre-trade) measured profit objective met before the pit-session close.

3/23/2012

Weekly Inventory Report
Unless thwarted by holiday scheduling, each week on Wednesday at 10:30am est the oil inventory report sets up a 100+ cent directional price swing somewhere between 10:32am est and 4:15pm est. Sometimes it happens right away… other times it takes into the afternoon before fruition.

But it happens.

Yesterday was no exception to this law of price action in CL. An early sell signal failed to work, while the subsequent buy signal succeeded to work as expected. From entry-signal confirmed to (and beyond) the CM Patterns (pre-trade) measured profit objective, it all unfolded according to script.

Two examples of why I center my trading career and financial future around crude-oil futures trading, and why we will base our CM EagleTeam program in part on CL futures trading. Some things happen like clockwork… not the least of which is active price action for active intraday traders.

For more daily updates from Austin, visit his blog at Coiled Markets.