HOW SHOULD WE DEAL CRUDE/NATURAL GAS INVENTORY DATA?
HOW SHOULD WE DEAL INVENTORY DATA?
On Wednesday, CRUDE inventory data comes@8 or 9 Pm.
There is sudden sharp move @ dot 8pm.
but it is difficult to predict whether it will go up or down.
On theoretical basis,
if inventory is less than expected, price should go up.
But Indian MCX market is not mature right now,
So many big players manipulate it against the common concept of market.
If all are expecting it to go up,
It will go up 15-20 points in sharp move,
all traders will trap in buying,
then sudden downfall starts.
This is called FROGLEAP.(If frog wants to jump further, it stretches backward it’s body)
So at 8pm, We have 2 ways –
- buy JUL sell AUG crude sl 10pt both side,
If sl hit in any side, open position once again in that side.
OR
2.If crude crossed average just after inventory
today
it slipped down below avarage,
sell it with SL above average.
for NATURAL GAS,
both side hedging before inventory doesn’t work.
@8pm It may break 2pt SL both side in 10 seconds.
So open hedging here,
after hedging ,at 8.03/8.06pm on settlement
OR
see buyer- sellers and above /below average position &
open single side position with 0.5pt SL 3times.
Small SL may hit once, so try it again with same SL .
It is 90% probable to get profit in end.