If at First You Do Not Succeed, Try Again In Access Trading
For the second day in a row the futures market opened
dramatically higher en route to posting a $2.08 daily high in the
first hour of trading. And similar to Wednesday's topsy-turvy
session, no new buying was seen to help lift the May contract over
resistance in the $2.07-09 area, which paved the way for
profit-taking activity yesterday afternoon. However in contrast to
the day prior, Thursday's trading saw a late rally, which buoyed
the market into settlement and put a positive spin on the day's
events. The May contract finished up 4.5 cents to $2.069.
"All eyes were on the $2.09 level from start to finish today," a
Houston risk manager said, adding the buzz in the pit was that if
the May contract had seen a $2.09 bid, the market would have taken
the opportunity to bounce immediately to $2.12.
Despite their failure in day trading, bulls were at it again
yesterday afternoon in the Access trading session, which saw prices
rally through the pivotal $2.09 level. Although that could
foreshadow the direction the market will take today, another trader
warns that a move through resistance in after-hours computer
trading is not the same as if occurred in the outcry session. "We
will need early confirmation from the over-the-counter market or
from a stronger open to determine if the move will hold," he said.
At 6:30 p.m. (EST), the May contract was 3.3 cents higher at
$2.102. Even if the market is not able to build on Access gains,
the trader feels the market will move higher next week, calmly
summing up his reason with a word-funds. "They have completely
reversed their short positions of last month and are responsible
for the rally from $1.90 to $2.04 last week. Now they are long and
will be getting even longer in the future." The Commodity Futures
Trading Commission will release its bi-weekly Commitment of Traders
report Friday afternoon and reveal if, in fact, the non-commercial
segment has switched over to the long side of the market. In the
last report issued March 26, non-commercials were still net-short
more than 12,000 contracts.
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