Livermoore, of the trading masters, often wrote that there is only one side of a trade - the right side. The right side is driven not drive by emotion by rather identification. The past masters often identify the right side through reading the tape and trading instincts. Today we have computers to enhance but not replace those skills.
The breach of the November swing highs was foreshadowed by a surge in trend energy. This trend energy has surged to a new high and continues to lead price. The trend is becoming more organized with the pull of the September swing high magnet increasing. While the rally is certain produce greed and fear, it still remains nothing more than a retracement within a sharp down trend.
Natural Gas ETF (UNG):
Headline: US GAS: Futures Fall As Traders Eye US Storage Report
Natural gas for January delivery fell 4.7 cents, or 1%, to $4.559 a million British thermal units on the New York Mercantile Exchange. The benchmark contract Wednesday surged by almost 5%, settling at its highest levels since early August.
Futures have been supported recently by cold weather over the Eastern half of the U.S., a trend that meteorologists say is likely to continue through much of the next two weeks. Meteorologists with private forecaster Commodity Weather Group said Thursday that colder-than-normal temperatures are likely for some major gas-heating markets in the Midwest and Northeast Dec. 14-18, with cold spreading to the South after.
Headline: Natural Gas Overbought?
Thomson Reuters recently quoted a Houston-based analyst as saying that the weather is driving price but the rig count is still way above what it was last year, and technically the market is getting overbought. What cold climate conditions have ensured is that the price of natural gas has been on an upswing despite concerns about a weak economy and an increasing supply.
0 comments:
Post a Comment