Term Structure Rejection After Inventory Report
Took an unusual short trade before the inventory report at 57.77 looking for the target of 57.60. Early market conditions were slow therefore we were in the trade for some time without movement. Once the move started to give some room I place the stop loss at the +1 tick as it looked like the price was going to just sit. The stop at the +1 was hit and then right after it went to target.
After the release of the inventory report, all eyes were placed on what price would do at term structure. The clear rejection of this told us that the overall market was bullish from the overnight distributions being above term structure closing on bullish intentions. The inventory report was just a pullback for additional supply to satisfy the demand for buyers. Long trade was taken at 57.63 for +33 Ticks.
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