Frank Petricca
Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.
Petricca’s Pick 11/10/2023
RBOB (GASOLINE FUTURES) UPDATE
My August 31st post was specific recommending Long-Term SHORT RBOB (gasoline futures) positions as market value was within my UPPER 25% parameter…And the Long-Term fundamental trend is down.
Clients and subscribers should note, however, that RBOB futures are now lower than the UPPER 25% of the Long-Term trading range where Long-Term accumulation is NOT recommended.
In my opinion the Long-Term downtrend is intact due to Crude Oil Production that is now at a NEW RECORD.
Over the past three months, production has jumped to a new record of 13.2 billion bpd and expected to rise further.
Please note that –
The EIA’s DUC reading (oil and gas wells that have been drilled but not completed) was 4.681 wells in September the lowest since January of 2014.
As DUC numbers decline, we may see an increase in drilling activity especially if crude oil prices rally from current levels.
Crude Oil – the main component of gasoline – makes up nearly 70% of the pump price of regular gasoline, therefore, it is not surprising that the per gallon price of retail gasoline follows a similar pattern to the price of Crude Oil.
Crude Oil prices are presently trading $76.48 the lowest level since July…
Please call me personally if you would like me to resend my August post that details the Longer-Term fundamental factors that continue to keep pressure on this Long-Term bear market.
My objective for gasoline futures is the lower 25% of the Long-Term trading range which would be the $120.00 level or lower.
That’s a move worth approximately $40,000.00 per 1 contract.
Again, my Long-Term Strategy points to trading at extreme lows or highs. The upper or lower 25% of the Long-Term trading range.
Based on several brokers studies, as many as 90% of traders are estimated to lose money investing in commodities.
This can be an even higher failure rate if you look at day traders, forex traders or options traders.
It is my opinion the short-term trader that initiates trades in the middle of the Long-Term range are more apt to be unsuccessful regarding this investment endeavor.
Those of you that have an interest in finding out more regarding my Longer-Term approach should call me for council. Would love to hear from you. 312-690-7763.
In the meantime –
Have a great year trading –
Best
Frank.
Questions? Ask Frank Petricca today at 312-690-7763.