Tuesday
Investing in Natural Gas
We have opened a long Natural Gas ETC at 0.735 – 2000 units. 
Natural Gas May 09 contracts are trading at $3.68-3.75. Refer to charts below. Whilst Crude oil has gone up with the market rally, Natural Gas have remained depressed and is trading close to recent lows. The ten year low for Natural Gas is about $2 (refer to chart). We believe a multimonth rally is here, and that prices of all commodities (should) rise with the market. Technically, NG is extremely oversold and is due for a recovery (albeit a temporary one until the next decline). We have anchored very lightly, and have chosen ETC simply because it has NO EXPIRY date, which from experience is important for non-day traders like us. Close to expiration, prices of commodities are usually subject to extreme manipulation defying all logic and fundamentals – usually depending on the net short:long and the direction it moves really is beyond us. Our monthly indicators suggest a multimonth rally is approaching, potentially one more dip down (which will suit our under leveraged position just fine) before heading up.
Ten Year Natural Gas Price Chart www.theinflationist.com
Natural Gas Price 1 Year www.theinflationist.com
We are tempted to hit harder but will stick to our Rule that you can never pick the turning point. General restrain is required after such a massive rally (more significant upside to come medium term), as we hope for a pull back to reenter more longs. Continue…
asdf-
Quick Look
Categories
- Agriculture
- China
- Commodities
- Contango
- Discrepancy Trading
- Dow Jones
- Dow Theory
- Elliott Wave Analysis
- Forex
- Free Stuff
- FTSE
- Gold and Silver
- Great Depression
- Jim Rogers
- Oil and Gas
- Stock Market Crash
- Stock Portfolio Widget
- Stocks
- Technical Analysis
- The Inflationist Challenge 2009
- TheInflationist StockPicks
- US Treasury Bonds
- Utilities
- Warren Buffett
- Your StockPicks
Popular
- The Inflationist Challenge 2009 (24)
- Stock Portfolio Management (5)
- TheInflationist Stock Portfolio Widget (4)
- MAGIK Numbers (3)
- Dow Jones: The Anatomy of a Crash (3)
Latest
-
Chicago Bridge & Iron Co: Fundamental Stock Research Analysis
no responses - Posted 05.16.13
Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings ... continue -
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued
no responses - Posted 05.15.13
The Dow Jones industrial average sits above 15,000, an all-time high. But don’t be fooled, this doesn’t mean that stocks are expensive. I understand that it seems logical to assume that if the Dow Jones industrial average, what many believe to be the bellwether index of the stock market, is at an all-time high, then it must simultaneously be overvalued. ... continue -
My Top 10 Fairly Valued Fast-Growing Stocks
no responses - Posted 05.14.13
Introduction This is part two of a series on investing for growth, part one can be found here. One of my primary objectives for preparing this series is to dispel some of the common myths that many investors hold regarding investing for growth. For example, many believe that growth stocks are, by definition, riskier than dividend paying stocks. Although there is some ... continue -
Super-Fast Growing Mid-Cap Growth Stocks With Explosive Returns
no responses - Posted 05.09.13
Introduction It seems like I’ve been writing only about dividend growth stocks for what seems like forever. Therefore, I felt it would be a refreshing change to alter my focus from dividend income to pure unadulterated growth. Although I’m a major proponent of investing in dividend growth stocks, unlike many of my fellow dividend growth investor friends, I am also ... continue -
DICK’s Sporting Goods Inc: Fundamental Stock Research Analysis
no responses - Posted 05.09.13
Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings ... continue -
BlackRock Inc: Fundamental Stock Research Analysis
no responses - Posted 05.08.13
Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings ... continue -
Deere: Fundamental Stock Research Analysis
no responses - Posted 05.06.13
Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line on the graph plots earnings ... continue
Tags
- ACN AFL APD BEN C China H-Shares China Milk Group CL CSCO DE Discrepancy Trading dividend growth dividend ideas dividend investing dividends DNB earnings ED EMR FDO FOSL Great Depression Hedging INTC investing for income JNJ KMB long ideas Magik Numbers Make Money MCD MMM MSFT ORCL PBI PCLN PG retirement ROST The Inflationist Challenge 2009 Tony Caldaro UTX value investing VFC WMT
Translator
