Crude Oil Rallies In Risk-On Enviroment

NEW: Register for our FREE Spread-Trading Webinar with Our in-house Spread-Trading expert Edgard Cabanillas.

Click here to register, limited seating, register now ----> http://www.managedfuturesexpert.com

Gross domestic product grew at a 2.7 percent annual rate, up from a 2 percent prior estimate, revised figures from the Commerce Department showed today, and US equity markets are trading up on the day thus far. Emini SP futures are up almost 8 points, or around .55%.  The emini Nasdaq is leading the way in US equity indices, trading up 23.5 points, or .88%. Traders seem to be reacting bullishly to not only recently released GDP data, but also to positive expectations regarding the fiscal cliff.  There is sentiment seeming to build that a deal will be reached before the Jan. 1 deadline. If this does indeed occur, we look for US equity indices to rally to new highs for 2012.

In a very interesting scenario, gold is the only precious metal which has not recovered fully from its massive sell off a couple days ago. Silver has blasted up 60 cents today, trading up 1.78%, and palladium is also up a significant 2.40%. Copper has rallied from a base of $3.40 this month, and is now up 2.21% this morning.

Soft commodities are also seeing by in large positive trading, with cocoa up 1.3 percent, cotton up almost 1 percent, OJ up 1 percent, coffee rebounding from the key 150 level at up .81 percent, and lumber leading the way at positive 3%.

We focus on Crude oil this morning. We have been calling for an $82 target, but today’s action is a bullish reversal day. We are still not fully convinced of a longer term rally, but if Crude indeed traverses the $92 level, we will start to believe a longer term move might occur. $92 is our key pivot. $85.50 seems to be a recent floor, and a general risk-on environment plus bullish supply #’s from yesterday’s report is stoking the rally today.

Crude Oil Futures

 Start getting our recommended trades delivered to your inbox and phone today.  Click below to get your free trial.

Investors:  See Actual Historical Performance Data and Information on Our TOP 3 Commodity Trading Advisors - Click Image Below.

Or, You Can Contact Us to Discuss Personalized, Broker-Assisted Trading with a Lido Isle Advisors Trading Professional.

Lido Isle Advisors is an elite provider of futures and options brokerage and Mobile Trade Alerts signals. The CEO of Lido Isle Advisors has been featured on CNBC and referenced in leading publications such as Financial Times, Forbes, Wall Street Journal, Reuters, Benzinga, Futuresmag, & Marketwatch for his expertise on the futures and commodities markets.