Monday, February 24, 2014

Natural Gas: As the British Nature Shows Used To Say...

....when the lion chose the old wildebeest:
"Sadly now, there can be but one outcome"

In a trade crowded with amateurs and underperforming funds:


$5.6240 down 51.1 cents last, $5.59 low.
From ZeroHedge:

Bank Of America: "NatGas Is Topping; Move To Sidelines ASAP"
While BofAML's Macneil Curry is a long-term bull on Natural Gas (with expectations of a push to $7.33 and on to $7.80), he warns, for now, its' time to move to the sidelines as a medium-term top is at hand...
The combination of continuation chart resistance at 6.41, coupled with the completing 5-wave advance and bearish momentum divergences in NGJ4 say the uptrend is exhausted for now.
Look for prices to pull back toward 4.54/4.33 before the long-term bull trend can resume.
Recently:
Natural Gas: Storage Report Comes In As Expected, Futures Drop
...Be that as it may, we're doing the picking up pennies in front of a steamroller thing, recommending a short in the face of all this just because the ascent was losing momentum. And as noted in one of the Tesla posts:

We'll be back with more but right now the more interesting question is "What happens to natural gas if the NYMEX raises margin requirements?'
Here's the week's action via FinViz, there is a lot of nervous money on the long side of the boat...
Natural Gas Goes Vertical Ahead of Thursday's Storage Report