Apr 182012

CL 05 12 (1 Min) 04.04.12

4/18/2012 Weekly Crude Oil Inventory Report (0430 HI time / 1030 EDT)
Forecast: 1.5M
Actual: 3.9M
Started @ 103.65
1st Peak @ 103.95 / Reverse to 103.54 – 0431 (1 min)
30 ticks / -11 ticks

Notes: Very volatile and erratic report that saw large oscillations due to a gain in crude supplies, but a draw on the products of 2.9 and 3.7 M barrels. This is responsible for the behavior. With JOBB you would have filled long at about 103.91then stopped immediately with a 15+ tick loss as the whipsaw began. After you see a first candle with a wick and a tail, it is a good play to place a limit order on either side of that as the price will swing again in a longer period of a few minutes. In this case a buy limit at 103.50 and a sell limit a few ticks above the 200 SMA at about 104.00 would be a good trade.