Energy Outlook for Wednesday, August 2
Aug 2, 2017 Trading Blog
Wednesday XOP Grid:
+.5 ATR 32.70
Tuesday High 32.66
50MA 32.57
Wednesday Pivot 32.34
Tuesday Closing VWAP 32.28
Tuesday Close 32.26
Tuesday Low 32.07
-.5 ATR 31.85
Absolutely no direction on Tuesday with price barely reaching -.5 ATR down at 32.07. There were several poor earnings reports Tuesday afternoon from some of the biggest shale players including EOG, PXD, DVN and NFX. There was also a surprise +1.8 million build in the API number Tuesday afternoon. And all this combined with an oil price that dropped sharply.
For the most part, I was actually impressed with how well the XOP held up with all this. Even after hours, given the bad earnings and API number, XOP never dropped much below the intraday low.
Wednesday Outlook: I’m looking for a long setup in the first 30 minutes on Wednesday. I think there will be an overreaction in some of the XOP components. I also believe the expectations for today’s EIA number are very low given yesterday’s API build. If the EIA number is anything decent, momentum has a lot of room to shift back positive and carry the XOP up with it.
Wednesday Earnings after hours: AR, AREX, CPE, CXO, ECR, HK, MCF, MRO, MTDR, MUR, NBR, OAS, OXY, PE, RICE, RIG, WMB, WPX.
EIA Oil Inventory at 10:30 am.