Successful energy traders maintain their edge by knowing what potential market moving events will occur during a particular week. Some will anticipate outcomes placing trades prior to the events. Others will wait until the results are known.
The market moving events scheduled for this week include Wednesday's Federal Reserve meeting and Thursday's and Friday's G20 meeting in Pittsburgh.
Should the Fed or G20 surprise with news that stimulative programs, including low interest rates, are no longer necessary, look for market participants to quickly sell out of long positions, taking the energy complex down quickly.
This scenario is highly unlikely to become reality as governments want to see unemployment numbers improving before even thinking about fighting inevitalbe future inflation.
In anticipation of this week's events, crude traders will likely begin the week hoping for a pull back to $70 and then begin putting on long positions for the ride to $75.
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