Indian Ticker : Choose Right Stocks that Ticks Money

Canada will release the Gross Domestic Product estimate for April at 12:30 GMT, where GDP is expected to contract by 0.1%, compared with the prior expansion of 0.3% in March, while GDP is expected to expand by an annualized 2.7%, easing from 2.8% in the prior estimate.

As for the United States, the data will start at 12:30 with the weekly jobless claims after they rose unexpectedly last week to 429 thousand. While at 13:45 GMT the Chicago PMI for June is due and expected to slow to 54.0 from 56.6.

The natural gas markets fell again this week, showing the range bound nature of this market as traders have been buying at $4-$4.20 and selling in the $4.80-$5 area. The lower end of that band is being tested right now, and as long as we are above the $4 mark, seems that a longer-term trader could go ahead and buy, with stops protecting them of course. Selling here would be almost impossible because of the strength of the support area.

Natural gas prices extended the drop last week despite expectations of warmer weather conditions, which pushed natural gas prices higher earlier in the week, however, the EIA report showed natural gas inventories rose above expectations, which weighed down on natural gas prices and pushed prices lower.

Nonetheless, we should expect natural gas prices to rise during this upcoming week, as expectations signal that temperatures will be above than average for this time of the year, which could increase demand for power-plant fuel.

Aug crude oil prices this morning are trading down sharply by -$2.41 a barrel and Aug gasoline is -7.32 cents per gallon.  Crude oil and gasoline prices yesterday moved higher after Greek Prime Minister Papandreou won a vote of confidence, which reduced concern that Greece’s debt crisis would worsen and after weekly gasoline supplies unexpectedly declined: CLQ11 +$1.24, RBQ11 +9.91.

Bullish factors included (1) reduced concern that the European debt crisis will worsen and threaten economic growth after Greek Prime Minister Papandreou won a vote of confidence, and (2) the unexpected fall in weekly DOE gasoline inventories (-464,000 bbl versus expectations of a +1.0 million bbl build).

Bearish factors included (1) weakened fuel demand after US gasoline demand in the week ended Jun 17 fell -0.5% to 9.319 million barrels a day, and (2) the larger-than-expected increase in the refinery capacity rate to its highest level in 10 months, which bodes well for future increases in gasoline and distillate products (+3.1 to 89.2% versus expectations of +0.5 to 86.6%).

In 1963, the Commodity tips Research Bureau developed a computerized trading system for the purpose of removing the emotional human element from market forecasting. Since then, countless trading programs, timing theories, and techniques have been designed and popularized by an even wider universe of individuals and companies for the purpose of “beating” the futures market. Yet, today, CRB’s Trends in Futures remains one of the oldest and most respected technical daily market letters.

The Commodity Research Bureau has been leading the world in commodities research and analysis since 1934.  Based in Chicago, Illinois, the firm has been the innovator of the CRB Indices, as well as the publisher of the CRB Yearbook, Encyclopedia, CRB Price Charts, Trends in Futures and Futures Market Service newsletters.

Trends in Futures trading system analyzes four different technical studies to categorize markets as trending up, sideways, or down. These four studies are a combination of moving average, price volatility, market momentum, and various time cycles. Support and resistance levels are recalculated daily and serve as “stops” when the market is in a trend phase and mark the breakout levels for new up or down trends when markets are in a sideways mode.

A decoupling from risk appetite trends that saw crude deviate from the S&P 500 for second day played in crude’s favor this time around. The WTI contract managed to advance despite a selloff on Wall Street as official DOE inventory figures revealed a much larger drop in inventories (-1711k barrels) last week than had been anticipated by preliminary API figures released on the previous day (-81k barrels).

Looking ahead, the absence of energy-specific economic data for the remainder of the week ought to see the link between crude and the S&P 500 reestablished, which argues for a bearish bias at the moment as futures contracts tracking the US benchmark stock index sink to the tune of 0.5 percent ahead of the opening bell in New York. Broadly speaking, this makes sense. Chinese and Euro Zone PMI readings showed continued slowdown in both regions while yesterday’s FOMC announcement painted a stark picture of lackluster performance coupled with the absence of further stimulus. Plainly put, all three of the world’s top economic growth engines now look worse than before, pointing to a weak second half of 2011 for oil demand.

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.