After having some problems with the new web site I am resuming this daily blog.
Today at the open the overnight and short term inventory was long.
We opened slightly above yesterday’s high and traded back down inside yesterday’s range.
Oil inventory number was scheduled to be released at 10:30 EST. As this is the case most of the time on Wednesday market went nowhere before the release leaving a poor high and a poor low at the extreme.
The level to watch for a possible inventory adjustment was below 52.30. Above that level bullish sentiment remained intact.
My key levels before the release was 52.47 ( yesterday’s high ) and 52.30 ( inventory adjustment level ).
A good selling opportunity came at the number release ( D period ) when after leaving a poor high and traded down to lower the POC we traded back up to the 52.45 level. Stop could have been placed above the day high at 52.56.
As the overnight inventory got corrected the day and short term traders got too short and had to cover which left a poor low behind.
At the end of the day we left a poor high and a poor low and today’s market was dominated by weak hands as many weak sells appeared on the pro suite market profile chart and day volume was low at 9 million shares traded on the USO ETF. Value ended the day higher making this selling day questionable.