Crude Oil Price - July 11, 2013

The WTI Crude Oil market rose rapidly during the session on Wednesday again, as the Federal Reserve released its minutes from the last meeting. It appears that several of the members are concerned about the employment rate, and as a result tapering of the quantitative easing that the market had been anticipating may be coming later than September, when the consensus seems doing very well.

Within this chart, you can also see from the fact that the Egyptian turmoil continues, and there is a certain amount of paranoia about the Suez Canal closing. Either way, this is well overdone, but the move during the Wednesday session had more to do with the Dollar than anything else in my opinion.

I still think there is a nice selling opportunity sooner or later, but we do not have that resistive candle in this market in order to do so. Because of this, I am still essentially on the sidelines, because I was not quick enough to get involved in the initial move higher. At this point in time, you're simply "chasing the trade" by getting involved ap here.

WTI Chart July 11

Parabolic markets always end poorly

In my experience, parabolic markets almost always end very poorly, and in reality some of the easiest money is made selling them at the right time. If we do get that in this market, I can see where we will fall to the $100 level relatively quickly. On top of that, I think we could even go lower than that if the right set of circumstances come into play. After all, a lot of the money in this market will be "weak hands", as they have entered the market late.

If we managed to break above the highs from the Wednesday session, I still am going to ignore this market simply because it is gone too far too quick. With that being the case, it simply a matter of sitting and waiting around for that reversal signal. I do not see it at this moment in time, and as a result I am simply going to sit here and try to be as patient as possible.

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.