Weekend News 09Feb

USD-WTI & Brent-WTI Correlations.

As inferred last week (here) & (here), the 97s failed as support and the market auctioned lower into the middle Jan cluster (95s-97s), achieving a stopping point at/near the structural support, 95s. 

Market response at 95s will be key next week. IF 95s fail as support, then price discovery lower into the lowest Jan trade cluster, 94.30s-92.40s. IF 95s are defended as support, then the market will revisit 97s and possibly challenge the intermediate high at/near 98.20s. 
Graphics

Central Banks 

Geo-Politics

  • Iran Rejects Direct Talks With The US. (RT)
  • Geithner, “Creative & Tireless Thinker”, Joins CFR. (Zerohedge)

Supply/Demand & Markets

HFT/Algo 

WTI Crude: Next Week’s Levels, Now. 01Feb

Our weekly TPO profile graphics for 01Feb.
The graphs show the monthly & weekly timeframe
conditions, in this case both buyside.

Plotted are Support (blue), Resistance (red),
and Points of Control (green) which
indicate monthly & weekly levels of significance
based on the market structure, not opinion.


Our weekly statistical levels study plotting key reference levels, weekly close for 01Feb, and projected levels for week ending 08Feb. 

This graph shows our weekly statistical expectations for 04-08Feb: (96.59, 96.17, 95.74 as potential support levels) as well as inferential analysis for the week. 
Result?…

The market auctioned lower this week breaking down from the recent trade cluster, 97s-98.20s, adjusting inventory lower into the middle Jan cluster, 95s-97s. 

The market auctioned between the 1st & 2nd Std Dev Lows near the middle Jan cluster POC, 95.90s,
before finally driving toward the key reference support at/near 95s, achieving a stopping point & balance there for the remainder of the week, as inferred. 

The structural context (breakdown from a prior trading range) implied potential for price discovery 
through the new range until reaching a key support, in this case 95s. This informed the participant that the sellside auction was likely to continue beyond the statistical extreme to a structural support level, 
allowing to maximize short positions from above and avoid premature long positions.

These graphs provide a holistic view based on the market generated data, not opinion, to inform the participant of structural levels of significance, statistically probable destinations, and the resting supply/demand clusters of the auction.

More efficient entry & exit. 

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