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Gold/Mining/Energy : Big Dog's Boom Boom Room

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From: Ed Ajootian	11/30/2006 7:33:15 PM
	Read Replies (3) of 206137

The best test of the strength of the pricing of a commodity is how it is priced by the markets when the underlying fundametals are "normal", or even better, "bearish". In this regard, natty has really outdone itself over these last 2 months. This marks the first time in history that the 3-month strip stayed over $7 for 2 straight months, without there having been a hurricane or 2 causing it -- see a chart of the weekly 3-month strip at futuresource.com . As we look back at what the fundamentals have been for these 2 months, we see that we have had record amounts of natty in storage. This is generally considered to be very bearish. We have had one of the warmest Novembers on record (at least in the NE), which also is bearish. In spite of these bearish fundamentals, we have broken the record described above. This says a lot -- maybe that Frank guy might be onto something! <g>

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