CL Redux

Quote from Visaria:

hmmm..ok

decided to short some at 9488



stopped out at 9590

Be careful with API data, as if EIA is different, and it was......many firms and traders already have the EIA official number far in advance....they just do...so watch how it is trading in front of the EIA number.

It seems the norm on most econ data these days that if you have the influence be it money, institutional advantages, etc. you have access to the numbers before the official release.
 
Quote from BlueStreek:

Quote from Visaria:

hmmm..ok

decided to short some at 9488



stopped out at 9590

Be careful with API data, as if EIA is different, and it was......many firms and traders already have the EIA official number far in advance....they just do...so watch how it is trading in front of the EIA number.

It seems the norm on most econ data these days that if you have the influence be it money, institutional advantages, etc. you have access to the numbers before the official release.
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Not convinced that anyone has the EIA in advance. Doesn't make sense either since the EIA was so bearish, yet prices were going up before the report came out.
 
Not convinced that anyone has the EIA in advance. Doesn't make sense either since the EIA was so bearish, yet prices were going up before the report came out.

Relative to the API data it was bullish, you think traders would be pushing oil at daily highs in front of an EIA report if there was any chance for a 9 mm build, they knew it was only 2 mm which (given the distil. story) was something they could push oil higher given summer driving season with higher product prices.

The only way with out some event like a refinery outage, hurricane, middle east issue that oil can be green given the API report instead of at the very least flat or down 60 to 150 ticks is if you know ahead of time what the actual EIA numbers are ( given the pre-EIA report trading) I expected the exact numbers that came out - a 2 mm build is basically noise compared to a 9 mm build which completely wipes out with interest the previous EIA report.

If you trade CL long enough you will know that big numbers that are for real are traded upon sometimes even 2 days before the report in either direction with traders front running the bearish or bullish numbers if they are extreme like 5 plus builds in products or oil inventories.

You would not believe the many ways firms get information - but when you pay as much as they do to third party information sources, have extended industry contacts, networking and relationship channels, proprietary channel checks - they know the number ahead of time (the big players).
 
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