Crude oil is a human
- Thread starter Tamil trader
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- Tags crude oil trading
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we have taken a view of factors which affects commodity market. Hopefully it will helpful to commodity traders.
First of all we should understand that though we are trading in Indian exchanges, domestic events have a very small role to play in commodities unlike to equity markets. Data releases from United States, European countries, Major metal consumer/producers countries like China, Chiele have major role to play in commodity market.
1. Indian market takes clue from International market like NYMEX (New York Mercantile Exchange), LME (London Metal Exchange) and varies accordingly.
Demand-Supply: More is demand; there will be more price rise. There is daily, weekly inventory data release from London metal exchange.Demand supply ratio can also be changed due to events like labor strikes at important strikes, environmental issues, Geopolitical situations etc.
2. Major factor which affects the base metal prices is Jobless Data (Unemployment claims) release from US. It is an indicator which majors the number of individuals who filed for unemployment insurance with the government for the first week than in the last week. In general, higher is unemployment, bad news for base metals and dollar which is U.S. currency.
3. Next important release is GDP release. GDP (Gross Domestic Product) is a primary Gauge of any nation’s health. Good GDP numbers especially from US and other European countries leads to more risk taking and rise in commodities like base metals.
4. FOMC meeting releases: US Federal Reserve declares the information about economic health and Federal reserve interest rates time to time .It has instantaneous effect on marker, especially precious metals like Gold and Silver are major to affect.
5 Retail Sales: This report is change in the total value in the retail sales. Positive figures indicate economic growth.
6. Housing starts/New Home sales: This report is a measure of the number of new residential buildings which began construction during the previous month. It’s a leading indicator of economic health because building construction produces a wide-reaching riffle effect.
7. Crude oil inventories are released normally on Wednesday (8 Pm IST),, has instantaneous effect on crude oil prices.
8. Natural Gas inventories are released, In general every Thursday (8:30PM IST).Report has instant effect on Natural Gas prices.
Now anybody here who can explain all these with practical examples and who can explain in some more clarity
First of all we should understand that though we are trading in Indian exchanges, domestic events have a very small role to play in commodities unlike to equity markets. Data releases from United States, European countries, Major metal consumer/producers countries like China, Chiele have major role to play in commodity market.
1. Indian market takes clue from International market like NYMEX (New York Mercantile Exchange), LME (London Metal Exchange) and varies accordingly.
Demand-Supply: More is demand; there will be more price rise. There is daily, weekly inventory data release from London metal exchange.Demand supply ratio can also be changed due to events like labor strikes at important strikes, environmental issues, Geopolitical situations etc.
2. Major factor which affects the base metal prices is Jobless Data (Unemployment claims) release from US. It is an indicator which majors the number of individuals who filed for unemployment insurance with the government for the first week than in the last week. In general, higher is unemployment, bad news for base metals and dollar which is U.S. currency.
3. Next important release is GDP release. GDP (Gross Domestic Product) is a primary Gauge of any nation’s health. Good GDP numbers especially from US and other European countries leads to more risk taking and rise in commodities like base metals.
4. FOMC meeting releases: US Federal Reserve declares the information about economic health and Federal reserve interest rates time to time .It has instantaneous effect on marker, especially precious metals like Gold and Silver are major to affect.
5 Retail Sales: This report is change in the total value in the retail sales. Positive figures indicate economic growth.
6. Housing starts/New Home sales: This report is a measure of the number of new residential buildings which began construction during the previous month. It’s a leading indicator of economic health because building construction produces a wide-reaching riffle effect.
7. Crude oil inventories are released normally on Wednesday (8 Pm IST),, has instantaneous effect on crude oil prices.
8. Natural Gas inventories are released, In general every Thursday (8:30PM IST).Report has instant effect on Natural Gas prices.
Now anybody here who can explain all these with practical examples and who can explain in some more clarity
Experience 24
"MCX Market is the "COPY PASTE MARKET" - So Profit Making is very easy
Just think one minute,
Determination of the Price in MCX Crude
1.Is Indian Traders having such capacity to fix the price of the commodity market?
2.Is there any market movers in India having capacity of buying and selling the tons of lots?
3.Is there any possibility to create the special community for operating the market like america?
The Answer for all the question is "NO NO NO"
Indian Traders have nothing in their hand. Yes, We are totally a copy paste market.
Yes.
We are copying the Nymex Crude and INR in International Market and
We are pasting in the Indian Market.
So, Technical Analysis based on the MCX Crude is no use. Technical Analysis and Fundamental Analysis based on the international market chart will only give the profit to indian traders.
As Technology is improving, Our Indian Market Makers are using the automated trading system attached with international market like MT4, to Place they buy or sell orders in the MCX, and Moves the Prices in the MCX.
In this post, i did not explain the full concept clearly. i just gave the basic thing only. in the next post, i will explain in details.
I will ask you a simple question. Think it and reply it. This question is to the my followers.
For Example:-
INR Rate is 60 Rupees- Constant
Crude Inventory data comes at 8:00:00 PM, Now MCX Crude Price is 6000, Nymex Crude is trading at 100$ at 8:00:00 PM.
Data is released as positive. So 8:00:01 PM, Nymex Crude price is 101$. MCX Crude price is 6060 at 8:00:01 PM.
OK? Just one second difference. 60 Points up move.
Who bought this 60 Points? Who sold this 60 Points?
Normal Traders cannot think within one second. But Our Indian Market makers moved the prices 60 points higher within a second. How do they know?
I know the reason. I will tell you in the next post. If anyone knows above sudden move, kindly explain here.
My Advance congrats to you!:clapping:
"MCX Market is the "COPY PASTE MARKET" - So Profit Making is very easy
Just think one minute,
Determination of the Price in MCX Crude
1.Is Indian Traders having such capacity to fix the price of the commodity market?
2.Is there any market movers in India having capacity of buying and selling the tons of lots?
3.Is there any possibility to create the special community for operating the market like america?
The Answer for all the question is "NO NO NO"
Indian Traders have nothing in their hand. Yes, We are totally a copy paste market.
Yes.
We are copying the Nymex Crude and INR in International Market and
We are pasting in the Indian Market.
So, Technical Analysis based on the MCX Crude is no use. Technical Analysis and Fundamental Analysis based on the international market chart will only give the profit to indian traders.
As Technology is improving, Our Indian Market Makers are using the automated trading system attached with international market like MT4, to Place they buy or sell orders in the MCX, and Moves the Prices in the MCX.
In this post, i did not explain the full concept clearly. i just gave the basic thing only. in the next post, i will explain in details.
I will ask you a simple question. Think it and reply it. This question is to the my followers.
For Example:-
INR Rate is 60 Rupees- Constant
Crude Inventory data comes at 8:00:00 PM, Now MCX Crude Price is 6000, Nymex Crude is trading at 100$ at 8:00:00 PM.
Data is released as positive. So 8:00:01 PM, Nymex Crude price is 101$. MCX Crude price is 6060 at 8:00:01 PM.
OK? Just one second difference. 60 Points up move.
Who bought this 60 Points? Who sold this 60 Points?
Normal Traders cannot think within one second. But Our Indian Market makers moved the prices 60 points higher within a second. How do they know?
I know the reason.
I will tell you in the next post. If anyone knows above sudden move, kindly explain here. My Advance congrats to you!:clapping:
Last edited:
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