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Monday, December 27, 2010

Are we setting up for a big rally in nat gas? This looks like a triple bottom forming to me. Im using the UNG chart for illustration purposes only.

MLPS are down a little but the whole group is sitting in a range between minus 30 cents and plus 30 cents. Watching paint dry.


Max said...


With the historical high spread between oil and nat gas, do you see any near or midterm potential for some of the big nat gas producers (COF, CHK, DVN to name a few) converting some of their nat gas to liguids as an investment play? I think SSL is building a plant to do that.

joewxman said...

SSL and DVN charts actually look pretty good. I think the nat gas bear play is about to run its course and if nat gas prices rise it should help producers. The oil/nat gas spread is at the extreme high end of the range. Unless oil pulls back sharply in here, nat gas has room to run to maybe 5 bucks or so. Im not crazy about CHK's chart nor i am crazy about the ceo when he did that huge insider sale around the time of the market meltdown.