Wednesday, January 31, 2007
MSN live trading group?
Does anyone else use msn messenger? I was thinking that we could set up a live trading group. That way during the day we could share any info that comes to us individually with the group but in real time..If you trade for yourself like me, it may be a good idea..
another day for the bulls
Should see some buying tomorrow...Alot of traders got caught wrong footed and were expecting a sell off in oil after the inventories..I stayed square just in case...Dow is on fire..oil over 58..Sentiment should be good tomorrow..I have been selling any run ups in oil sector this week...Haven't been a believer in the strengthening oil price this week..either has the market luckily..Tend to trade VPC and BUR..think we need a few good solid closes like tonight to sustain the rallies..so I might continue to sell any run ups and try buy dips in the morning for next few sessions.. as my friend always tells me : 'always leave a bit for the next man'..Bullish talk coming from Nymex though..they want to buy this thing up over 60 again.. I think I may just be a believer for now!
Dow hits highs on the back of FED leaving rates unchanged
Fed keeps interest rates at 5.25 percentWASHINGTON (AFX) - The Federal Reserve, faced with a strongly rebounding economy, left interest rates unchanged on Wednesday while repeating concerns about inflation.The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 percent, where it has been since last June.That decision had been widely expected given an economy that is exhibiting better-than-expected growth. While the Fed had been expected to start cutting rates later this year, economists are now worried that the central bank may feel the need to resume raising rates for fear that inflation pressures will not keep easing.The rate action was supported by a unanimous 11-0 vote of the Federal Open Market Committee, the panel of Fed board members in Washington and regional bank presidents who meet eight times a year to set interest rates.At the previous four meetings, Jeffrey Lacker, the president of the Richmond Fed regional bank, had dissented in favor of a further boost in rates. However, he is not a voting member of the FOMC this year.The action means that banks' prime lending rate, the benchmark for millions of consumer and business loans, will remain unchanged at 8.25 percent.
Oil above $58
Oil prices climb above $57 a barrelNEW YORK (AFX) - Oil prices rebounded above $57 a barrel Wednesday, extending Tuesday's spike as traders brushed off gains in U.S. crude and gasoline supplies and refocused on heating fuel demand and upcoming OPEC production cuts.Trading was highly volatile, dropping by more than $1 right after the weekly inventory report's release, and then rising again -- continuing the energy market's recent roller coaster ride that has seen the price of a barrel of crude oil swing from $61 to $50 and back up to $57 in a single month.The huge movements reflect traders weighing ample supplies around the world against the likelihood that demand will surge as cold weather returns and U.S. economy chugs along more robustly than expected, and the potential for OPEC to slash more production.The Organization of Petroleum Exporting Countries begins its second round of production cuts, announced late last year, on Thursday."Whether or not they comply fully, psychologically, it's still important," said Chip Hodge, an energy portfolio manager with John Hancock Financial Services.The energy market has been skeptical about whether OPEC was enforcing the reductions it's promised, but recent comments out of Saudi Arabia, OPEC's biggest producer and exporter, have suggested that the cartel's members are indeed decreasing their oil production.Light, sweet crude for March delivery rose 30 cents to $57.27 in afternoon trading on the New York Mercantile Exchange, after dropping as low as $55.75 and rising as high as $57.80.Brent crude for March delivery rose 16 cents to $56.55 a barrel on the ICE Futures exchange in London.Nymex heating oil futures for February rose 1.71 cent to $1.6551 a gallon, while February gasoline futures fell 1.88 cent to $1.5025 a gallon. The contracts expire on Wednesday.Meanwhile, natural gas futures fell 10 cents to $7.635 per 1,000 cubic feet.The choppy trading followed huge price jumps on Tuesday. Crude oil traded as high as $57.05 before settling at $56.97 a barrel, a gain of $2.96. Natural gas had soared more than 80 cents, or 11.6 percent, on forecasts that predict temperatures will dip below freezing in the U.S. Midwest, the heart of the natural gas market.On Wednesday, the Energy Information Administration said in its weekly report that crude oil inventories rose last week by 2.7 million barrels to 324.9 million barrels.Gasoline inventories rose by 3.8 million barrels to 224.6 million barrels, while distillate inventories -- which include heating oil and diesel fuel -- fell by 2.6 million barrels to 140.0 million barrels. A decrease in heating oil surpassed a small increase in diesel fuel.The results were close to what most traders were expecting, and reaffirmed the belief that U.S. supplies of crude and gasoline remain abundant, but recent cold weather has been eating into heating fuel supplies.Colder-than-normal temperatures are expected through mid-February in the U.S. Northeast, which is responsible for 80 percent of the country's heating oil consumption.The EIA said Wednesday that residential heating oil prices rose for the first time in six weeks in the period ending Jan. 29. The average residential heating oil price increased by 2.7 cents per gallon last week to reach 236.0 cents per gallon -- which is 10.1 cents lower than last year at this time.
US GDP for 4th quarter comes in 3.5% ( above expectations) but chicago pmi falls short
BULLET: US DATA: Jan Chicago PM index was 48.8 vs 51.6 in....US DATA: Jan Chicago PM index was 48.8 vs 51.6 in Dec and expectations for a gain. Prices paid were 54.9. New orders were 46.3, production 53.2, and employment 42.8, inventories 41.9.Provided by: Market News International
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