US Markets Close in the Green

Premarket activity, which as an indicator of actual market trading is a mixed bag with respect to its reliability. Our analysis is based on the knock on effect which states that when, in a highly negative environment such as we have been experiencing, the US market traders who apply the brakes to the rout by buying into the downfall and arresting the declines, is followed similarly by the Asian markets, the Euro zone markets often follow suit. It is a reliable stratagem. We will take our profits at between 120798 and 12110 today with stops set at between 11991 and 11958. A gap that formed last Thursday will close at 12128. This too is a significant indicator for us as all gaps eventually close.

West Texas Intermediary, the US benchmark crude oil has been falling steadily and gradually for the week. While today’s Crude Oil Inventory report is always a grade crossing requiring attention, we don’t expect any development to reverse the current trend. On the contrary our research indicates that the inventory will likely continue its growth as it has in 7 of the last 9 weeks. Note well that sometimes, not often, the price reacts contrarily to the inventory report’s outcome.