Showing posts with label futures. Show all posts
Showing posts with label futures. Show all posts

Monday, January 28, 2008

Sleeping Bull?



Above is a 5 year weekly continuation chart of natural gas futures. You'll notice for the past 2 years Natural gas has been in a trading range from $4 to about $8.

Below the price chart are three colored lines which show the net activity of the large, small and commercial traders. What I am interested in is the red line which represents the net position of the commercial traders.

When the red line is below the zero line, it means the commercial traders are net short, above the zero line the commercials are net long. As you can see the commercial trader are not only very long, but this is their largest net long position in the history of this contract. In my opinion, this is extremely bullish and I am anticipating a significant move up at some point.. Lets keep an eye on this market. The above chart is courtesy of barchart.com

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