Consolidation Overload!

Portfolio managers across the globe will tell you they’d take a trending market any day over a market in consolidation. Markets in consolidation are difficult to trade, especially for the hedger. Prices will often provide false breakouts while volatility and volume tend to drift lower.

The energy and metals futures markets have been in consolidation mode since mid 2011, the better part of three years now. The good news for energy and metals traders …. nothing lasts forever! Prepare for breakout.

Energy – Crude Oil, RBOB, ULSD

Energy Consolidation Chart, 15May14

Metals: Gold, Silver, Copper, and Platinum

Metals Consolidation Chart, 15May14

Murphy & Co’s position model currently holds a long RBOB Futures (symbol: RB) position, a short Silver Futures (symbol: SI) position, and a short Copper Futures (symbol: HG) position. To learn more about Murphy & Co’s position models, visit

Posted in Copper, Crude Oil, Energy, Gold, Metals, NY Harbor ULSD, Platinum, RBOB Gasoline, Silver Tagged with: , , , , , , , , , , , , , , , , , ,

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