Monday, December 17, 2012

Andrew McCreath is a Natural Gas Bear

I was business channel flipping last mid week (CNBC & BNN) and happened the catch BNN’s scrappy little Andrew McCreath proclaim “the natural gas bulls are wrong again” in reaction to a down day on natural gas prices.

I gather McCreath is strictly a fundamentals guy because I have never known him to refer to a chart. I gather he did not see that natural gas had put in a spike low in April and then rallied to be followed by a quick May correction which did not make a new low. Also the relative perform vs. crude broke to the upside and all that remained to confirm a new bull was small overhead at the mid May pivot point or as Elliott would say, the recognition point which was overcome about 6-weeks later.

Later the same day we learned that a Chinese state-owned company is ploughing another $2.2 billion into the Canadian oilpatch. Natural gas giant Encana Corp. (TSX:ECA) and a subsidiary of PetroChina announced last Thursday they have reached a deal to work together in the Duvernay, a promising shale natural gas formation in west-central Alberta. So who is right, McCreath or the Chinese?

There may be opportunity in alternate energy plays because I also see the coal, solar and uranium stocks are attracting some bids.  


Anonymous said...

I re-read post few times, but probably because English is my second language, I was not sure I understood - do you think Natural Gas hit bottom and we should expect pull? said...

Hello Mr No-Name

I think Nat Gas is in a youthful bull - but stay away from those Nat Gas Bull ETF's just play the producers

Bill Carrigan

Anonymous said...

Hello Bill,

Thank you for clarification. The reason I asked was - I already lost a lot of money on Nat GAS Bull ETF, specifically HNU.TO, so I was trying to figure out mabe it is time to buy into that position more and recover some losses. But somehow you sensed were I am going and warned me not to do so. Thank you again for sharing your knowledge!