LNG Shipping Sector Versus ETF SPY
Summary
- World LNG shipping sector continues rising, while the main US market represented by ETF SPY declines.
- Some stocks of LNG shipping companies have already reacted to this positive news.
World LNG shipping sector continues rising, while the main US market represented by ETF SPY declines . The gap between these two indices is closing despite both moving very differently.
(source: UP-Indices.com)
UP World LNG Shipping Index is close to the previous double top formation. First peak was formed in the beginning of June, the second in the middle of August. This week UP index should try to break over this price level.
It might succeed as the NG and LNG prices are rising in hand with rising shipping spot rates. Some stocks of LNG shipping companies have already reacted to this positive news. Companies like Golar LNG Ltd. (GLNG), Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK) went up followed by industry leader Qatar Gas Transport Company Ltd. (Nakilat).
Golar LNG Ltd. weekly chart (Source: Author via Amibroker platform)
Nippon Yusen Kabushiki Kaisha weekly chart (Source: Author via Amibroker platform)
Mitsui O.S.K. Line weekly chart (Source: Author via Amibroker platform)
Qatar Gas Transport Company weekly chart (Source: Author via Amibroker platform)
On the other hand the doble top is a strong pattern in technical analysis and sellers will wait at these price levels.
Personal note: Yesterday I have bought GLNG at around $11.7 and wrote September and October covered calls with strike $12.5. I expect the price of GLNG might go to $13 and $15 in October.
Analyst's Disclosure: I am/we are long DLNG, GLNG.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.