EIA Natural Gas Report

11-21-2013 3-18-05 PMOn the the E-mini S&P, the opening price was (1784.25). The day’s high price at (1795.50) was reached at 3:20 p.m. US/Eastern Time. Today, the low price (1783.50) was hit about 5 minutes after the market opening. Each week, the Energy Information Administration (EIA) gives a report on natural gas stocks in underground storage for the U.S. and three regions of the country. This is important information for investors because prices for natural gas products are determined based on the level of inventories. In this week’s report, there was a drop of 45 billion cubic feet leaving 3,789 bcf of natural gas in inventories in the week of November 15. The expectation this week was a draw of about 35 bcf. This report has little or no impact on the market.

Empire State Mfg Survey

11-15-2013 4-13-34 PMThe opening price on the E-mini S&P today was (1791.25). At 11:50 a.m. US/Eastern time, the market double bottomed at (1788). At 4:05 p.m. US/Eastern time the high price of the day (1796) was hit. Each month, the New York Fed conducts a monthly survey of manufacturers in New York State. Representatives from a variety of industries participate. About 175 manufacturing executives respond to the questionnaire, which is sent out on the first of each month. The questionnaire covers an assortment of indicators from the previous month. Respondents are also asked for their views about the likely direction of these same indicators six months ahead. In the month of November, the conditions have turned slightly negative in the New York manufacturing region. The General Business Conditions Index dropped to minus 2.21 from 1.52 in October. New orders are at minus 5.53, unfilled orders are at minus 17.11, shipments are at minus 0.53, and employees are at zero this month. These lacking numbers are pointing to further declines. This is the first time since May that the Empire State index is in the minus column, which indicates a flattening in growth, not a reversal.

Crude Oil Prices

10-21-2013 chart2The opening price on the E-mini S&P today was (1739.25). The lowest price of the day was (1734.75) at 2:25 p.m. Eastern time. The day’s high was hit at 10:05 a.m. Eastern time of (1742.50). In the week of October 11 oil inventories rose by 4.0 million barrels to 374.5 million. Oil imports remain steady at an 8.0 million barrel per day rate in the week. With the seasonal slow down, refineries are operating at 86.2 percent capacity vs. the low 90 percent rates during the summer. Gasoline and distillate inventories are down 2.6 million and 1.8 million barrels in the week respectively. With oil prices at the $100 level per barrel, it is now moving slightly slower following today’s report.

Monitoring Price Action

There are so many ways to monitor price action. TradeStation, NinjaTrader and MultiCharts are the most popular software platforms for such monitoring. One thing that all of these platforms have in common is a real-time chart view of the market, with indicators for price.

Here are a couple of examples:

…fairly complicated to look at, wouldn’t you agree?

This one is a little bit better, but you can see how multiple indicators can get in the way of following price:

And finally, probably the easiest to follow – NinjaTrader and the DayTradeToWin.com Atlas Line:

Nothing to get in the way: pure price action trading where the methodology is as clear as the chart!

To find out more about price action trading using easy-to-understand charts and indicators, check out these videos:

…there’s also a part 9 but it’s rather short.