Remember this day as we are seeing history in the making. US Oil fell to as low as 1 Cent a barrel, the lowest in it’s entire history of before settling at 10.5 Cents on suspension of trading. Back in June 2008, US Oil hit a high of just over $147 per barrel. This is the current ‘cash’ contract which I believe expires later tonight. All future contracts are trading higher but still at unprecedented lows. Will be interesting to see what the new cash contract trades at. The main reason for this is lack of storage in the US, all are full to the brim upon lack of demand from the coronavirus. I will also expect a huge reduction in US Shale oil rigs as some have a break-even of $40pb. Fridays Baker Hughes oil rig count will also be interesting as the current number stands at 529.
Anyway, our GBP pairs, which were technically Dom short did very well today with some good points available on far from ideal ICS Balances. One of the worst ICS Balance was the EUR/AUD and this showed on the manic movement of price. However we knew this before we traded and this was one to avoid.
The German Dax was the same. This started the morning in conflict with the US Dow and negative German data didn’t bode well with our long Doms. Despite this there were some excellent early trades in the long direction, though identifying price entries was more tricky than normal.
Volatility is now levelling off and even our brokers spreads are nearing normal too. This gave us a maximum potential of 475 points from specific Max Day Trading time/price level entries from the London morning session alone, with a target of just 30.
A 10% target of this figure would have yielded a minimum of 47 net points from specific Max Day Trading time/price level entries, with many additional opportunities in the US morning (UK afternoon) and US afternoon (UK evening) sessions.
