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brownsfan019

Crude Oil (CL) on Globex

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Has anyone traded or looked at the CL, Crude Oil Physical Delivery contract? This puppy can move. Contract info: http://www.nymex.com/CL_spec.aspx

 

It caught my attention recently b/c I used to trade the QM (miny on Globex) and slowly the volume just died. I wasn't willing to daytrade something with so little volume. And I thought oil was out of my trading life.

 

Until I found the CL. I was able to find it due to the massive data available through Open ECry to their customers. I enjoyed trading the QM as it always provided a completely different instrument from the indexes to trade.

 

I know others here have asked about contracts that can move or just something to consider outside the indexes and the CL is a possible option. The volume is decent for an oil contract and can provide a nice contract to trade that does not move based on the US indexes.

 

Some highlights of this contract:

  • Tick value = $10.00/tick USD
     
  • Trading is good till 2:30pm EST. It is still open after 2:30, but due to the pits closing, the electronic contract dies as well. Kinda nice if you don't want to work will 4:15pm! ;)
     
  • This thing will react to the weekly oil inventory numbers, so I suggest knowing exactly when this report is (usually Wed @ 10:30am EST).
     
  • This is a PHYSICAL contract, which means if you hold until settlement, it is NOT settled in cash. It is settled in REAL oil. In other words, do not hold into expiration.
     
  • Speaking of expiration, the contract expires MONTHLY. I have an alert on the 3rd Wed of the month to watch volume rollover. Again, exit all trades of the current month by the 3rd Fri of the month. I would not suggest holding this contract overnight anyways, so if daytrading, you should be out of all positions by the close.
     
  • This puppy can move, so please watch before trading real money.
     
  • Most brokers/charting have this contract as the CL.
     
  • Commissions can be higher than other contracts. Open ECry has been very competitive with me for CL trades. One issue I have found is that some brokers do not clear the Nymex/Globex trades, so your broker will have to route the order to another broker and of course, this adds on cost to you.

 

Here's some charts for anyone interested, esp if you do not have the data feed currently.

ALL charts are 5 minute charts.

 

7-20-07

attachment.php?attachmentid=2026&stc=1&d=1184965347

 

7-17-07

attachment.php?attachmentid=2025&stc=1&d=1184965334

 

7-16-07

attachment.php?attachmentid=2024&stc=1&d=1184965334

 

7-11-07

attachment.php?attachmentid=2023&stc=1&d=1184965334

 

Again, due your own due diligence before trading the CL, but it's worth a look in my opinion! :thumbs up:

5aa70de71ddd4_CL7-11.png.1291ef6ac93f9afcf76c5769dbdb8674.png

5aa70de7227ca_CL7-16.png.0186f7336a94b69027785a45656bbf55.png

5aa70de726ffe_CL7-17.png.fb894221d5c67b1eee25b536bda803b4.png

5aa70de72bab0_CL7-20.png.036d57f2e778844b2d2f54afd29c37d9.png

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There's enough liquidity to trade QM with 1 or 2 contracts no problem. If you're trading more than that then it's cheaper to trade CL. Oil definitely responds well to bread and butter technical analysis. The Wednesday inventory numbers are read out on NewsStrike which is always useful. I should think most retail brokers will automatically close out your position for you before expiry.

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There's enough liquidity to trade QM with 1 or 2 contracts no problem. If you're trading more than that then it's cheaper to trade CL.

 

If I am reading my chart correctly, it looks like there was 13,000 TOTAL traded today and about 20,000 for a good day. If so, no thanks, even with 1-2 lots. CL today had 241,000. Slight difference.

 

Oil definitely responds well to bread and butter technical analysis.

 

Good observation notouch. That's kinda what grabbed my attention! ;)

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The spread is usually no more than one tick and there's plenty of bids and offers so if you want in or out you can get in or out at a reasonable cost. I will be moving to CL though once I'm more confident about the long term profitability of my set ups.

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I got screwed up big time on QM some time ago due liquidity. I should say it was my fault as I went in kinda heavy loaded. CL is nice and tops sometimes over 300k contracts a day( back when I stopped trading currently I have to see). Along with DAX is at the top of my list.

 

Inventories and good ol' S/R lines is all I use to trade this baby...sweet trades

 

Good choice brown

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QM on tradestation orders have been receiving complaints so it might be better to go to another broker. I heard the slippage was a problem and occasional charting problems. That was about 6 months to a year ago, that may have changed already. I haven't traded QM or CL...yet.

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Has anyone noticed the overnight S/R as significant factor morning trades?

 

Is this contract traded in a different exchange besides Nymex? If so, it might be a good idea to observe the overnight S/R for those exchanges as well.

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London exchange, under Brent. This is the most important market in terms of volume, NYMEX comes second. But TS doesn't support this product so I can't really see much. But thanks for reminding me, I should look elsewhere for charting this product.

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Are you talking about QM specifically or in general? On ER2 I never had problems, I compared them side by side orders and matrix quotes with Infinity, were the same. As for QM, TS forums had a few threads with delayed quotes and fills.

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Are you talking about QM specifically or in general? On ER2 I never had problems, I compared them side by side orders and matrix quotes with Infinity, were the same. As for QM, TS forums had a few threads with delayed quotes and fills.

 

In general. I am on the hunt for a new chart software and I heard horror stories about TS execution. But it was back last year. I am currently on a tryout with sierra charts and so far so good. I know TS has many goodies and I've been thinking about trying them out to see how it goes.

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feb - check out MultiCharts as well. And they recently starting supporting data from Open ECry as well. So if you are a client of OEC, you can take the data they provide to customers and plug into MultiCharts, therefore eliminating the need to pay for data.

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feb - check out MultiCharts as well. And they recently starting supporting data from Open ECry as well. So if you are a client of OEC, you can take the data they provide to customers and plug into MultiCharts, therefore eliminating the need to pay for data.

 

Thanks a lot brown and sorry for hijack your thread. I'vebeen using transact for years and have no compliants whatsoever, but I am willing to change for the sake of having better charts. Have you any experience with open Ecry??

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Guest cooter

Does anyone still trade the mini-crude QM if they can afford to trade the main CL contract?

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if i had the resources, i'd dump QM right away. the spread makes short term trading a bit more difficult. on a tight budget i'd stick with QM, because you can establish more positions for scaling in and out of the trade.

 

i'd love to swing trade CL when it turns down, of course who knows if that will happen this year but it's more likely than not. has anybody got an idea how to find out when the right moment would be to go short?

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Does anyone still trade the mini-crude QM if they can afford to trade the main CL contract?

 

Sure do - I trade both. I mainly trade CL but many times QM too. For instance, sometimes I don't have as much confidence in the market conditions so I use QM in those situations. Liquidity isn't an issue for me - i can get in & out fast with QM and almost never get slippage on stops. QM is great for my use.

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i'd love to swing trade CL when it turns down, of course who knows if that will happen this year but it's more likely than not. has anybody got an idea how to find out when the right moment would be to go short?

 

I personally wouldn't short CL at these levels. There's no indication that the oil bull market is over, and while you may get some down days, or even a pull back to 70, it really would be a gamble in my opinion, for a swing trade.

 

Some oil guy on CNBC said today that the long term picture for oil is down, because of OPEC's announcement today. If anything these were to be bearish implications, but the bears couldn't keep it down. We still had a higher close....on and on they said it was bearish bigtime, news from the pit.

 

Tommorows an important day.

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