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Bank Of America: "NatGas Is Topping; Move To Sidelines ASAP"
While BofAML's Macneil Curry is a long-term bull on Natural Gas (with expectations of a push to $7.33 and on to $7.80), he warns, for now, its' time to move to the sidelines as a medium-term top is at hand...
The combination of continuation chart resistance at 6.41, coupled with the completing 5-wave advance and bearish momentum divergences in NGJ4 say the uptrend is exhausted for now.
Look for prices to pull back toward 4.54/4.33 before the long-term bull trend can resume.
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Clearly overbought for the short term...
I agree, take profits and get ready to reload...
I don't buy it. There are some fundamental issues to consider before calling this overbought.
For example:
http://ir.eia.gov/ngs/ngs.html
Yeah, the stocks are very low but this is the season for that...
And I agree that one should BTFD (which possibly may have already occured today)....
But at ~$6.45 it was clearly short term overbought...
http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html
And I agree that if there is another uptick in demand, it could get real ugly for the shorts. Especially if the stocks curve doesn't start to inflect...
What? No objectivist ad hominem attacks today Flak? I'm stunned.
Well for a change, you didn't insult me and you made a good post raising valid points...
Funny how that works, eh?
Oh no you don't.
When I disclosed yesterday that I work for a company that supplies frack sand to the E&Ps, you responded by accusing me of "talking my book" when I refuted some of the fracking pollution of water aquifer bullshit.
You're the insulting one. And you're incapable of seeing the logical fallacies contained in your Randian objectivist outlook. If that's your attitude, you have to expect informed people to respond by telling you you're too stupid to live.
Buddy, you are making a fool of yourself...
Publicly supporting fracking while geting your paycheque from the business is the very definition of talking your book...
And I said that I did not have an issue with your getting your paycheque from fracking related activities as a man's gotta do what he can to put bread on the table...
But I'll take whatever you have to say about fracking with a humongous grain of salt...
And finally, this is not even close to an ad hominem...
Edit: As for calling me a "Randian Objectivist", that is a new one for me here.. It's almost like calling Pol Pot a humanitarian...
So now you're illiterate too?
<Sighs audibly.>
An argument stands or falls on its own merits. When, in a debate, one tries to counter an argument by attacking some flaw in its speaker, one commits the logical fallacy of ad hominem. By stating that you take my argument "with a humongous grain of salt" because of the identiy of my employer, you commit this fallacy. You may as well have said I have a booger hanging out of my nose, therefore my argument is invalid.
Buddy, YOU are making a fool of YOURSELF.
Am I getting through to you at all?
At no point have you even made a head-fake at countering my central argument.
Why take my word for it?
http://www.investorwords.com/8436/talking_my_book.html
Re; you have to expect informed people to respond by telling you you're too stupid to live.
I have yet to meet an intelligent, informed person Who would ever deside for another, that they should die of stupiity.
You have forever deminished yourself on this forum.
You've never met flak.
You've never met a proofreader either.
Oh ya, production up, demand down, and storage levels dropping. EIA report is the same as all other government reports. Bullshit. There is no surplus gas, shale is for fools.
-30 F here this morning and the vortex is heading south east.
Burn gaz bitchez.
Stack On
It is quite possible that this will be the summer that the myth of boundless NG from fracking will be put to sleep...
Or the frac-induced earthquakes will crack the foundation of my house.
Speaking of natural gas... I probably shouldn't have had so much broccoli for lunch.
What did you frack with?
Just don't go "Jackass" Doc....and try to flare off any excess with a match.
Be sure to check if your gas is sour before flaring.
derp.
I think that's a safe assumption after eating broccoli
he could always take this approach.
Still gold.
Okay, that was just gross.
That's the perfect visualization of the inevitable blow off top that is coming from this mother of all financial ponzil bubbles we find ourselves in.
A good cabernet from the local winery.
At least it wasn't a fuckin' merlot...
In the short term, maybe. Another frigid winter for the E.Z. when Russia shuts off the pipelines, not so much.
After being stripped of their wealth and robbed into debt servitude by zionist banksters and overrun by mooslims, Uncle Vlad's offer don't look so bad.
bullshit.
long term bull trend? seriously?
Natural gas storage levels well below 5 year average and still being drawn down.
http://ir.eia.gov/ngs/ngs.html
Storage will need to be refilled. Sorry BAC but I think I will continue to hold my nat gas stocks with their big fat (and increasing) dividends.
Also there is the small matter of 40% of EU Nat/gas which has till now been piped through the Ukraine by Gazprom.
Some how I think that pipeline may become a rather hot button issue.
5 bucks it is...
Natgas monthly puts a better perspective on these price moves:
http://bullandbearmash.com/chart/natural-gas-monthly-rockets-16-closes-r...
Some resistance around 6.10 - sure looks like a blow-off - these large moves up are not holding.
Bank of America: Bank of America is topping, get out ASAP.
"long term bull trend? seriously?"
Didn't you hear? The prices have nothing to do with supply and demand but everything to do with a bunch of random shit I drew on a graph.
Using the Deep State model that Charles Hugh Smith talks about, I'd argue that NatGas is dangerous to the dominance of the USD, because of its "substitution" effect to using oil. Oil is priced in USD's, NatGas is not. Which is why the US does not want the EU to become even more dependant on NatGas -- unless such gas came from its ME Friends, who will continued to use the USD. Ukraine and its pipelines are therefore an integral part of the Big Game: NWO rule via King Dollar. And he/they who control the supply of the USD controls the US and the world.
If countries like Russia, Iran, Brazil, etc, had any sense and strategic foresight, they'd back their currency with at least two items in their asset basket: Gold + Carbon_Fuels. This provides stability plus flexibility, as those with plenty of the latter can provide stability to their currency.
As Kirk has been saying for a long time: "A currency has enduring and universal appeal only if it is backed by Assets with universal appeal: Precious Materials + Precious Energy."
Curry has a good run of near perfect calls lately. Noone is of course forced to follow it nor is he/she asked not to use a SL. Looking at the charts it's definitely worth a try - funny-mentals don't matter anyway.
Everybody out of the pool!