A contrarian makes another call – this time, natural gas

Natural Gas, the commodity proclaimed dead by many, has recently seen positive chatter from notables such as Pickens and Groppe. These gentlemen which I have no affiliation cite bullish fundamentals.

In a recent Globe and Mail article, Groppe suggested the following:

“ We think that we're now having a continuous, rapid decline of gas in storage. By summer, it could get to be alarming.” “We would expect gas prices to get above $8 in the August-September range.”

I have watching positive inflows into Natural Gas for weeks/months. It wasn't until recently that these inflows created bullish setups.

Quiet, heavy buying from Commercial traders is very positive.

Natural Gas ETF and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Retail money hates Natural Gas. Retail money is often on the wrong side of the trade at turning points.

Natural Gas ETF and the Nonreportable Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Source: theglobeandmail.com