Natural gas bulls were as scare as good judgment at a drinking contest

Do you think "operations" are limited to the currency markets, i.e. the Euro takedown? Natural gas bulls, as little as a couple of weeks ago, were as scare as good judgment at a drinking contest.

The leverage money flows have been suggesting accumulation for months. Accumulation will give to mark up once the “experts” begin to turn bullish en masse. Is this a coincidence? Coincidences tend not to repeat, but classification of events tends to be immaterial when playing the “game” correctly.

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: Natural Gas Prices May Advance in 2011 on Lower Production: Energy Markets

Natural gas prices may rebound next year as producers cut output for the first time in six years amid record stockpiles and an expanding U.S. economy.

A 21 percent drop in prices this year will contribute to a decline in drilling for the fuel sold to factories, power plants and homeowners, the Energy Department said in its monthly Short- Term Energy Outlook on Dec. 7. Output will average 62.01 billion cubic feet a day in 2011, down from a record of 62.09 billion this year, the department estimated.

Source: bloomberg.com