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TFC Commodity Trading Forum

Energy Review for The Week of August 1, 2011 *PIC*

The Energies Review
For the week of August 1, 2011

By Daniel Cronin

Last week the market saw crude close out relatively flat with a run to $100.60 and then a dive back to $95.70 as investors anticipated the debt ceiling issue. Well, good news for the markets as the issue seems to be resolved for the moment with Congress coming up with a plan to raise the debt ceiling as the S&P opened up +16 on the overnight Sunday session. Crude looks to be headed higher for the beginning of the week but I believe OTM puts could be purchased here as crude will likely drift lower after the news settles in. Arbs have gotten crushed again with Sep now -22. This is the lowest it has been ao far and a good indicator of the downward pressure being put on wti.

Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.