Comments on Fund My Mutual Fund: Natural Gas: Another Sector that Won't Quit - Sout...

there's no stopping Natural Gas. we're good for at...

2008-04-26T00:09:00.000-04:00

there's no stopping Natural Gas. we're good for at least another year. i'm seeing it hit 15.

yea, right on. fundamental issues with natgas and...

2008-04-25T15:25:00.000-04:00

yea, right on. fundamental issues with natgas and it should go higher for all reasons already mentioned. been long UNG for a while now and trying to come up with a solid price target for it since its not exactly the same as buying nat gas contracts. ie: $10 natgas = $__ UNG. there have been some divergences between the two before though so its hard to figure out the exact correlation.

got me wondering, mutual funds can't even invest in futures can they?

**There is supposed to be some ratio with crude to...

2008-04-25T12:21:00.000-04:00

**There is supposed to be some ratio with crude to nat gas **

Come on guys, when did you start investing in energy, yesterday??

The ratio is 6:1

That means burning 6000 cubic feet of NG will give you as much energy as burning 1 barrel of crude oil.

Currently the ratio is over 10, due to transportation demand that pushes crude above its BTU value ratio equivalence with other fuels.

The ratio I am aware of is oil to NG should be gre...

2008-04-25T11:49:00.000-04:00

The ratio I am aware of is oil to NG should be greater than 10 to 1; when the price of oil is > 10x NG, NG tends to perform well. This is not a strict timing signal but to suggest that NG is attractive relative to another energy source. At the time, I wrote some fundamental reasons why NG might move higher: 1) another energy source; 2) use in conversion of other energy sources like corn to ethanol; 3) just another commodity that hasn't exploded higher; 4) the suggestion being that the normal seasonal cycles had been disrupted

It is sort of funny, because when I wrote my Febru...

2008-04-25T11:22:00.000-04:00

It is sort of funny, because when I wrote my February piece I had to go to some old watch lists I had that I had not touched in 2-3 years. Had to get refamiliar (sp?) with the space. I used to use the canadian names, ECA, and the like back then but with the US peso I suppose the American players are much better now.

There is supposed to be some ratio with crude to nat gas and if that ratio held I read that ng is supposed to be $14

So maybe it signals we have $30 of "fluff" in crude oil prices; if ng is in the $10s. (if the ratio is correct)

Anyhow, I still believe we get some correction in all these commodity names relatively soon. Hard to commit new money to such extended charts.

I believe NG can get to $14; price moves in NG gen...

2008-04-25T11:18:00.000-04:00

I believe NG can get to $14; price moves in NG generally end with a spike and this is not it; in this case, the technicals identified this for me back around $8 for NG and I sent you my analysis of such. After a 2 year base, there were a lot of positive technical signs that pointed higher