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J. Patrick Marzano manages the operations and communications of Metrixx. He began his career in the futures industry as a broker at the Chicago Mercantile Exchange (CME Group) working for Aries Options Brokers and American-Way Futures. He also served on the Dow Jones Options Pit Committee. In... More
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Metrixx Fair Price Report
  • Light Sweet Crude Oil - WTI (CLEZ13) Value Summary Review 0 comments
    Nov 13, 2013 11:07 AM

    After opening the U.S. session (8:00 am - 4:15 pm CST) higher, the December Crude Oil contract drifted lower establishing Fair Price at 94.56. Although this level held as fair price for a good portion of the session, prices did continue to drop. Two Value Gaps were created, the first from 94.46 - 94.35 and the second from 94.06 - 93.81. Looking at the distribution below, we can see that prices began to consolidate towards the later part of the day. Establishing Fair Price at 93.11, the Value Area High at 94.53 and the Value Area Low at 92.89.

    (click to enlarge)

    Fair Value Definition: The Metrixx Fair Value indicator provides traders a measure of fair value in listed derivatives markets by showing at what prices levels have the most liquidity for a certain period of time. Traders can use this indicator to map out entries, exits or appropriate stop levels. Or they can simply use it as more precise support and resistance that they can incorporate with other indicators. Subscribers to Metrixx see this information in real time when it can help them the most.

    What am I seeing: The lightest colors show the beginning of the session, the darker the color the later in the trading session. The larger the distribution the more value market participants have placed at that price level. A distribution outside of the blue colored area is viewed as being outside of that session's Value Area. Those areas of single distribution are noted as Value Gaps.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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