I always like trading Crude for one reason, it behaves.
What I mean by behaving, is that the information we harvest from monitoring the tape seems to be quite consistent with indicating price moves.
My pet theory on Crude 'behaves' because much of the trading in this market is done by folks who really have to manage how much crude oil their business will consume.
Thus, when they enter the market, they are not trying to game the system, they are merely trying to hedge.
Thus, the footprints that they leave on the tape are sincere...and price behaves accordingly.
The WOW Index in today's crude market offers an excellent illustration of this.
You can monitor the WOW Index in Crude in real-time for free (no login, nor subscription required) at http://algofutures.com/wow-indices/wow-index-crude/day-trading-chart/.
Here's a snapshot of today's WOW Index in crude:
- WOW Index | Crude | Nice WOW to Price Harmonization
