Wednesday, November 29, 2006

Natural Gas

No doubt, a combination of a surprise draw in the liquids and the forecast for colder than normal weather the first 10 days of December is sending natural gas to a more than 3% gain today. The strong move above the double top of $8.68 has prompted me to take a nearly $1/bbl profit in crude ($1,187 profit per crude futures contract) and roll into January natural gas e-mini contracts in search of a move toward the upper end of the September pivot at $8.97. The chart below shows this area approaching $9 will be a major area of resistance. +$9 would bring us back to the days when Amaranth was still alive.

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