Deep Pockets Are Looking at Natural Gas

Deep pockets are beginning to acquire into the fear. Connected money, which is long-term orientated, has been increasing leveraged long positions into weakness for months. Expect them to push retail money into a short-side capitulation soon. See charts below.

Statistically concentrated markets tend to foreshadow trend changes. Waiting for the right setup, though, will require discipline and patience.

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


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


Headline: Chevron to Buy Atlas in Race for Natural Gas

Chevron became the latest energy company to set its sights on unconventional natural gas exploration, announcing on Tuesday that it had reached an agreement to acquire Atlas Energy

Source: dealbook.nytimes.com