The exchange released volume and open interest stats over three hours late and as a consequence this will be a truncated report. For any question, please call or email.
WTI crude oil:
August WTI to crude oil advanced 50 cents on volume of 1,165,420 contracts. Total open interest increased by 7,799 contracts, which relative to volume is approximately 60 % the below average. This August contract lost 6,792 of open interest. It should be noted that the open interest increase on June 28 was the second in a row. On June 27, the August contract gained 86 cents and total open interest by 5,681.
On both days, this indicates that new buyers were moving prices higher. As this report is being compiled on June 29, the August contract is trading nearly unchanged on the day. August WTI remains on short and intermediate term sell signals. Stand aside.
Natural gas: On June 28, August and September natural gas generated short term buy signals and remain intermediate term sell signals.
Yesterday, August natural gas gained 3.00 cents on volume of 302,572 contracts. Total open interest declined by 4,767 contracts, which relative to volume is approximately 35% below average. Yesterday, we recommend the initiation of bullish positions and as this report is being compiled on June 29, the August contract is trading 4.8 cents lower on the day.
It is made a daily low of 3.038, which is slightly below yesterday’s print of 3.047. As we said in yesterday’s note, we think the risk on the down side is rather limited but cautioned that typically natural gas prices bottom in the mid-July time frame.
Dollar index: On June 28, the September dollar index generated a short term sell signal and remains on an intermediate term sell signal.
Euro: On June 28, the September euro generated a short term buy signal and has been on an intermediate term buy signal.
British pound: On June 28, September British pound generated short and intermediate term buy signals.
10 Year U.S. Treasury Note: On June 28, the September 10 year treasury note generated a short term sell signal and remains on an intermediate term buy signal.