CHK's money flow was negative today, probably due to market conditions.
TICKS MONEY FLOW AVG. PRICE
Small Blocks +145 -189 +0.8 -1.3 4.1674
Large Blocks +15 -16 +2.6 -4.7 4.1313
Total: +160 -205 +3.4 -6.0 4.1394
June natural gas futurues were on the most active today
as the contract hit new highs.
bloomberg.com
From the NY Natural Gas Review:
crbindex.com
Updated Wed May 10 16:19 ET
NY Natural Gas Review: Storage fears drive Jun to 3-year high
By Peter Rosenthal, BridgeNews
New York--May 10--NYMEX Jun Henry Hub natural gas futures settled up 13.4
cents at $3.317 per MMBtu, soaring to a 3-year, spot-month high as the latest
American Gas Association data renewed fears that storage levels are too low. Jly
gained 13.2 cents to settle at $3.338 per MMBtu.
* * *
"Low storage now means even lower storage levels going into winter," said
Aaron Kildow, analyst at Prudential Securities. "The whole curve moved up, which
is interesting."
The AGA reported this afternoon that storage grew 58 bcf last week, at the
low end of most expectations. Domestic storage typically grows by at least 70
bcf in the first week of May and analysts had predicted an injection below that
would prompt traders to cover short positions.
"A lot of commercials are big buyers, I just expect more upside," a broker
said. "This probably points to $3.500."
The 58-bcf injection widened the year-to-year deficit to 363 bcf, or 21%,
and the latest figure has renewed concern that U.S. demand will outstrip
production this summer, when inventories typically are refilled for the winter.
An unusual early-May heat wave has added to those concerns, especially as
more gas-fired power plants are expected to be online this year than last.
"They're already factoring in a low number for next week," a broker said.
OUTLOOK:
Jun is poised to move higher Thursday, after setting fresh contract highs
and landing at its highest close since November 1997.
"After this move, what's another 10c," an analyst said.
Another low AGA injection next week cannot but add to the fuel that has
propelled Jun higher in recent days and protected it from serious profit-taking
attempts.
"The locals tried to take it down today, but they couldn't penetrate
$3.150,' a trader said. "I see a very bullish pattern on the weakly chart," he
continued. "Now we've broken last week's high and closed above it, I think we're
moving to $3.500."
The market is expected to trade in a close range for a while to consolidate
recent gains before next week's AGA survey gives it another jolt.
"Producers might hedge some of their stuff if they haven't already," a
trader said. "We'll trade in a range for a while, but I wouldn't be surprised if
we continue the acceleration. After all, we closed almost up to the day's high
today."
UPCOMING:
--NYMEX Jun futures expire May 26. Jun options expire May 25.
--American Gas Association storage report due out at 1400 ET Wednesday.
IN NYMEX TRADING TODAY:
CONTRACT MONTH TICKER SETTLEMENT CHANGE EST. MIDDAY VOLUME*
(/MMBtu) Futures Options
Jun NGM0 $3.317 + 13.4c 27,941 16,595
Jly NGN0 $3.338 + 13.2c
Aug NGQ0 $3.343 + 12.6c
EDIT, just noticed that DD put up same article. |
