That was a Holiday week as prices gaped open ($.26) lower only to spend the remaining days erasing that loss and ending the week $.015 higher. As expected all of this action occurred on below average daily and weekly volume.
January has had a strong history since ’92 of starting a month with a gap up or down. Sometimes (like last week) the gaps happen before during or after the holiday period. After what appeared to be a devastating gap lower to a three month low, prompt gas managed to trade a second straight reversal week and finish higher. It should also be recalled the historically importance (compared to other calendar months) is attached to the January extremes. For example, in 16 of 30 years the Q1 high has traded during January, on the other hand –14 times the January low has been the Q1 low. For some unknown reason, January trade has significant impact for prices during the year.
