Energy Trading Notes, 12-22-16
Dec 22, 2016 Trading Blog
Refiners led the way today with MPC (+2.8%), HFC (+2.4%) and VLO (+1.2%). Some news suggests the bump in refiners was from the selection of Carl Icahn as a special adviser on regulatory reform. MPC set up to trade the best with clear supply zones at 49.75 and 50.50. The opening drive took it to the 50.30 level for a quick short back down to the 49.75 level, where it bounced and headed for liquidity at the 50.50 level. I was actually surprised that there wasn’t much pullback after hitting the level, therefore I think there will be an opportunity tomorrow for a long trade on any opening weakness.
The next trade I have for tomorrow is COP. The 51.35 level has been holding for a couple of days and I’m looking long on any stop run below that level for a quick return to the 52.10 level and possibly through that barrier to the 52.50 mark.
XOM is also an interesting watch for Friday. Tight consolidation just under the 90.85 level. If it can break out of that, there is about 60-70 cents of easy run into the first resistance.
There wasn’t much news out today. I was expecting some run in APC with their news of divesting the Marcellus assets, but it didn’t happen.
The list of the top 50 energy stocks had 30 up and 20 down with a small gain of .11% on the evenly weighted portfolio.