Yesterday we provided the initial template for how to trade oil if you are an HFT idiot. [5] Today we move to the next step in the evolution... In a perfect mirror of last week's trading, Oil dumped on API inventories this week, pumped on DOE inventories (both massively more than expected builds) and then dumped it all back the next day on absolutely no news whatsoever - back to a $48 handle. Tomorrow we have 'rig count' data - which by now we know is entirely irrelevent for now to any changes in supply - but last week created a manic meltup into the NYMEX close... trade accordingly.
[6]
As we noted above, if prior performance is a predictor of future success (or failure), and with self-referential HFT algos it ususally is, ahead of tomorrow's 103rd lesson, here is what tomorrow's trading session should look like, when factoring in the all important "latest and greatest"rig count plunge.
[7]
