Oil, Heating oil, and Nat. gas divergences

Discussion in 'Commodity Futures' started by scriabinop23, Sep 27, 2006.

  1. Each has a different story.

    1) Kind of surprising to see oil so resilient through another bearish EIA report. 6mil+ difference in gasoline storage + another few million extra in heating oil? Perhaps we are at a bottom and have true support around 60-61.

    2) I understand oil bottoming, but heating oil inventories are extremely high. Kind of surprising to see heating oil up.

    3) Interesting to see nat gas selling, converge with oil after the EIA report, the diverge once again. Natural gas is selling -- no relief in sight. Surprising once again to see the spread widen from 1.30 to 1.40 right now between Oct NG and Nov NG. There has never been on record such a difference between these months on close. This will be something interesting to watch throughout the day.

    if Oct NG holds at 4.18, I expect there to be another easy 10-20 (60-90 in my dreams) cents the shorts can make today til tommorow on November gas.

    Opinions on the spread?
  2. wow.. 4.07
  3. Be prepared for the following scenario tomorrow:

    1. Bearish news (VERY bearish news) on ng storage.
    2. Knee jerk reaction down.
    3. Violent snap back.
    4. Shorts cover on the bad news.
    5. More shorts cover on the bearish news
    6, Short term bottom (at least) made.

    I am putting a limit buy order thirty cents below the close today, and will put a buy stop order five cents above Thursday's early high later Thursday morning.
  4. OCT has stopped trading correct ?

    did not the hedge funds that got crushed this yr in nat gas trade back months on nymex and otc ?
  5. What did NG do today?