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.
Posts
3 comments:
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?
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
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!
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