By Jeff Clark, editor, Market Minute We’ve likely seen a top in the price of natural gas. That might seem odd. After all, the weather is just now starting to turn colder. Natural gas usage is likely to increase as we head through the winter. And, all the college economic textbooks say that increased demand leads to increased prices. But, the real world is different than the textbooks… Recommended Link | BIOTECH MASTERCLASS [COMING SOON!] You’re invited to Jeff Brown’s Biotech Masterclass. Look “over Jeff’s shoulder” as he investigates the biggest biotech story in America right now. In one day, a small cap could start to soar up to 1,000%; within 12 months, it could turn a tiny stake into a nest egg. This is a millionaire-making opportunity that demands your immediate attention. To be clear: This masterclass is 100% free. | | -- | In the real world, the market anticipates shifts in demand. Today’s price of natural gas already discounts the expected increase for this coming winter. In other words… we’ve already seen the rally. Take a look… The “wintertime” rally in natural gas actually started a few months ago. From the bottom in late June to the top in late October, the price of natural gas jumped more than 100%. But, that rally has ended. For the past few weeks, the price has been falling. This chart has now made a series of lower highs and lower lows. That’s the definition of a downtrend – which means we’ve probably seen the peak in the price of natural gas. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. | Now, it looks like the price of natural gas is going to fall below all of its moving average lines. And, those moving averages look poised to shift to a bearish formation – with the 9-day (red line) and 20-day (green line) EMA's crossing below the 50-day MA (blue line). The 3 Best Pandemic Stocks So, we’re likely headed for a few weeks, or maybe a few months, of lower natural gas prices.That’s not too surprising. After all, we saw the same sort of action last year, and the year before… To the average person, it seems odd that the price of natural gas would peak prior to the coldest months of the year. But, traders know the market anticipates the shifts in supply and demand. The market discounts the future. Folks who are thinking about buying natural gas in anticipation of a brutally cold winter should think again. The price is likely to be lower in the months ahead. Best regards and good trading, Jeff Clark Reader Mailbag What do you think are other economic ideas that could be considered "college economic textbook" for the average person, but don't pan out the same in the real world? Let us know your thoughts – and any questions you may have – at feedback@jeffclarktrader.com. In Case You Missed It… Millionaire Trader Reveals "5 Minutes A Day" Retirement Blueprint Jeff Clark, the self-made multimillionaire, has helped people from all walks of life retire wealthy… His plan is designed to get your retirement on the fast track with his unique strategy. What's more… it's a piece of cake. "With my strategy, you can take advantage of it with as little as a few minutes a day." – Jeff Clark Do you know what it really takes to become a successful trader? Click here, and he could change your life. |
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