Sir. Monaco's  Instablog

Sir. Monaco
Send Message
  • Tantamount To A “I Told You So”, The Natural Gas Bubble Is Still Popping “Look Out Below!” 11 comments
    May 8, 2013 10:00 AM | about stocks: APC, BBG, BP, BTUUQ, C, CHK, COG, COP, DVN, ECA, ELP, EQT, FST, GDX, GLD, GS, JPM, KWK, LNG, MS, NFX, QEP, RRC, SLV, SPY, SRE, SWN, UNG, UPLMQ, WPX, XCO, XEC, XOM

    Tantamount to a "I Told You So", The Natural Gas Bubble Is Still Popping "Look Out Below!"

    The natural gas bubble has started popping and the beginnings of this pop should send shivers down any natural gas traders back. The recent drop is set to continue further as regardless of this weeks EIA report, the injections coming are currently set up for four weeks of 100+ injections. This coupled with the EIA recent reporting that this years total injections will be 1% greater than last year's will most likely cause the gas markets to plummet and we calculate a 25% chance of seeing sub-$3 dollars over the next 45 days. Other charts calcs show a 53% chance of prices being between $3.00 and $3.40, while there is a 75% percent chance that we hit below $3.65 in the next two-three weeks.

    Massive exodus of the natural gas sector is being caused by the excessive speculators creating all the hallmarks of the bubble and with record injections now coming, they are being yanked the other direction with self-inflictions and vividly this market is on toothpicks holding up a concrete foundation. The weight of the situation will take hold and the coming weeks sell-offs could be massive. It wouldn't be surprising if we see a $0.50 single day sell-off on bearish news. More news to come…

    ###

    Disclosure: I am short UNG.

    Additional disclosure: short natural gas

    Stocks: APC, BBG, BP, BTUUQ, C, CHK, COG, COP, DVN, ECA, ELP, EQT, FST, GDX, GLD, GS, JPM, KWK, LNG, MS, NFX, QEP, RRC, SLV, SPY, SRE, SWN, UNG, UPLMQ, WPX, XCO, XEC, XOM
Back To Sir. Monaco's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $USO $SPY $DIA Iran oil delivery beginning delivery gear-up, trade wisely, markets flooded with black gold,
    Dec 4, 2013
  • $SPY I just dropped a bombshell in today's "Wall Street Breakfast: Must-Know News" article (I was holding back on telling all about this)
    Nov 21, 2013
  • $TLT $DIA $QQQ $SPY after reading article by Bloom: http://bloom.bg/1f96PIZ I decided to c data http://1.usa.gov/1f96RAt
    Nov 18, 2013
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.