“Davidson” submits:
How to track what is driving a market at any point in time is a question which befuddles many. First, what drives prices is market psychology which can shift quickly from one factor to another. Watching what people are saying and what reaches such a pitch to justify media headlines and making a comparison to detailed price shifts is the only way to see changes in price drivers.
This morning’s employment report spiked oil prices. We have been talking about an ‘oil glut’ for more than 4yrs. The spike at 8:30AM indicates the belief that better than expected economic activity will be seen as bullish for oil prices. This is a huge shift from the ‘oil glut’ mentality in our recent past.
Expect, oil prices to rise significantly as investors embrace the view that economic activity remains in expansion.
Here is the chart of $WTI futures in 5min increments past couple of days.
