Natural Gas Update
posted Oct 7, 2004 at 10:55PM
Below is a chart from Sept 14 "Natural Gas Sector Charts"
Mostly on the basis of weekly stochastics I thought it a good technical point to put money into a basket of natural gas stocks.
As we can see below, things worked out fortuitiously, with a strong impulsive move upwards. Buying enthusiasm however has reached frothly levels. 3 out of the 4 stocks I owned had reached overbought levels so all in all a good time to cash in chips.
Natural Gas Index
Again, at a technical condition which often leads to pull-backs.
Another point to consider is that oil tends to lag gold in reaching major tops by 11 months. If that historical pattern holds true then oil is in the process of a blow-off top which should start reversing sometime in early Novemeber.