Tag: natural gas

A Small Bet On Natural Gas Could Make Traders Big Profits

Posted on by admin

By: Joseph Hogue of Street Authority

The surge in natural gas production has changed the energy landscape in the United States. Production jumped 44% between 2005 and 2014 compared to a decline of 4.5% over the previous nine-year period.

Prices for natural gas at the Henry Hub in Louisiana jumped 162% between 2002 and 2008 on lower production and an economic boom in emerging markets. By 2012, prices had fallen nearly 70% to $2.75 per million BTU. Beyond a few spikes on colder weather, prices have flatlined between $2.50 and $3.50 for the past two and a half years.

Natural Gas Prices and Production

Futures prices on the Chicago Mercantile Exchange (CME) suggest traders are not expecting much to change this year, with the December contract priced at $3.17. But two catalysts may prove speculators wrong and spark a rally in natural gas prices. Traders who get positioned now stand to make up to 50% profits without ever touching a futures contract. Continue reading "A Small Bet On Natural Gas Could Make Traders Big Profits" →

Winter is Coming - Here's My Favorite Seasonal Trade

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By: Jared Levy of Street Authority

Over the years, I've been successful trading weather patterns as they relate to commodities such as crude oil, gasoline and grains. As unpredictable as the weather can seem, there are patterns, and traders who get ahead of the crowd can exploit them for reliable profits.

Today, I'm going to share one of my favorite seasonal trades with you, and that is the tendency for natural gas prices to rise in the winter months as the colder weather spurs demand for use in home heating.

Source: U.S. Energy Administration

For seven of the past 10 years, the price of natural gas has risen between the beginning of September and the end February, with an average gain of 17.6%. Continue reading "Winter is Coming - Here's My Favorite Seasonal Trade" →

Obama Gives Putin A Billion Dollars!

Posted on by The INO.com Team

A friend sent this to me over the weekend, I thought you might find the premise interesting.

Adam

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The Ukraine buys almost all its energy (natural gas) from Russia. Revenues from natural gas sales are a primary source of income for Russia.

Because of the recent disagreement between the Ukraine and Russia, Russia is raising the price of the natural gas it sells to the Ukraine.

The Ukraine is almost broke and can't afford the increase in the natural gas price because it would be forced into bankruptcy.

Obama just announced the United States is giving the Ukraine $1 billion to assist in paying for the higher priced natural gas it buys from Russia. Continue reading "Obama Gives Putin A Billion Dollars!" →

Chart of The Week - Natural Gas

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week's focus turns to the March Natural Gas futures, where strong price action stemming from bullish fundamental data gives way to a possible buying continuation. Total Natural Gas storage stands at 1.686 bcf, or 27% below the 5-year average. This draw in supply has been aided by recent extreme cold temperatures across the United States.

After posting a recent swing low of 4.563 last week on Monday, February 10, 2014, the market has experienced a sharp climb in prices. Last week, we also saw the 20 day moving average act as support for the bullish market on multiple occasions, making this indicator a key support level in a swing trade opportunity.

As we start this week, we have seen yet another push up to the 5.400 level, indicating the Natural Gas market still holds a bullish sentiment. Continue reading "Chart of The Week - Natural Gas" →

It's Tricky Tuesday, So Be Careful

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Tuesday, the 11th of February.

Tricky Tuesdays

What are they and why do they matter? Oftentimes bull and bear markets come to an end on a Tuesday, why is that? It all has to do with momentum. Typically a market builds up momentum over the weekend and that enthusiasm tends to carry over into Monday and early Tuesday trading. This is the same momentum rule I use for the "52-Week New Highs on a Friday" trading strategy.

Rule #1: On a new 52-week high when the market closes at or close to its high on a Friday, buy and go home long for the weekend. Continue reading "It's Tricky Tuesday, So Be Careful" →