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Crude Oil Fuels Volatile Day in Commodity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 20, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    A bigger decline than expected in weekly inventories sent December Crude Oil sharply higher on Wednesday. The rally was triggered when crude stocks fell by 8.4 million barrels to 343.6 million barrels. This news caught traders by surprise as many were trading the short side of the market following a sharply lower Chinese stock market overnight.

    The rally in the crude oil market ignited the start of short-covering rallies in the equity futures markets. Stock traders were pressing the downside of the stock indices early in the trading session because of the bearish move in the Shanghai Index. Today’s bullish crude oil report caught traders by surprise as usually the equity markets lead the energy markets.

    The rally in the equity markets fizzled late in the trading session when it became clear that fresh money was not going to chase the market at current levels. Traders will have to decide tomorrow and Friday whether today’s bottom was real or just a reaction to the better than expected crude oil report.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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