Weekend News 26Jan

This week’s auction resulted in a
balance phase in the upper Jan cluster (95.00s-97.00s)
following the multi-week directional phase higher.

The market rallied toward the weekly
1st standard deviation high level, 97.11s,
which we alerted our weekly subscribers to
last week (here). This area offered
the most asymmetric & efficient reward potential
of the week, resulting in an approximately
$2 inventory adjustment lower on Wed.



The market is now in a balance phase,
(95s-97s), awaiting the next directional catalyst. 

IF buyside fails at 95s, probability favors
price discovery into Jan lower cluster,
(92.50s-94.50s), (here). Conversely, IF buyside
defends 95s, probability favors challenge of 97s
and possible continuation of upside
directional phase.

Balance begets imbalance….

Graphics

Central Banks

Geo-Politics

  • Frontline: The Untouchables. (PBS)
  • Hillary Clinton Calls For Broad Intervention In Africa. (Guardian)

Supply/Demand & Markets 

  • Canadian Oil Trapped By Tight Line Capacity. (Platts)
  • Energy Swaps Migrating To Futures On Dodd-Frank. (Bloomberg)
HFT/Algo

WTI Crude: Next Week’s Levels, Now. 18Jan

Our weekly TPO profile graphics for 18Jan.
Plotted are Support (blue), Resistance (red),
and Points of Control (green) which
indicate monthly & weekly levels of significance
based on market structure.

These graphics clearly show the early Jan upside 
breakout above the Dec distribution. Here, we
also see the auction higher/range extension
above 94.70s to 96.00s.
Our weekly statistical study plotting both key
reference levels & price action for the week ending 18Jan
and projected levels for week ending 25Jan.
Result?…

The market auctioned to at/near the 1st Std Dev High, 97.11s,
this week where the market achieved a stopping point 
followed by long liquidation to at/near 95s. 

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

More efficient entry & exit. 

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