As I flipped channels last night from the World Series to football, I kept getting stuck on the Weather Channel listening to the reports of today’s pending arrival of Hurricane Sandy across the U.S. Eastern seaboard. The effects of hurricanes and natural disasters have the potential to impact global markets far and wide. Today’s NinjaTrader Chart of the Day powered by free end of day Kinetick data takes a look at U.S. Light Sweet Crude Oil ($CL_F) and the price action of this market after the April 2010 BP oil spill and 2011’s Hurricane Irene. The green and red candlesticks represent the weekly price action of oil and the black box style outline is the monthly price action of oil. Both time series are overlaid on the U.S. Emini S&P futures ($ES_F) which is the blue “mountain” style chart series. When looking back at these events and the price action of oil immediately following these events, we notice a few items within the chart that stand out. Larger trading ranges on a weekly basis and an eventual bullish rally. Will this market react the same after Hurricane Sandy? Traders may look to these past events to determine their own trade setups as U.S. markets return to open trading hours. From all of us at NinjaTrader headquarters in Denver, CO, our thoughts go out to those in harm’s way and wishing you safe shelter from the storm.
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