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Gold/Mining/Energy : Games Trader -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (730)	6/22/1999 8:09:00 PM
From: John Paquet	Read Replies (3) \| Respond to of 1239

If you nwatch energy stocks, The way I look at is that crude oil price action and that OXI or TSE Oil and Gas index. I was a bit bearish due to these few days oil can not break up that $19.00, and OXI can not break that 530. Instead oil went down to $17.37 and OXI went down to 506...etc.. VLV I could conclude that to break that $5.00 seems unlikely unless VLV small mid-cap has some new discivery down the road. Otherwise, my trading strategy [again very shorterm and only apply to my own, NOT to influence your own thinking ] I would sell that VLV right at that $4.85-4.95 area and use that working capitals to buy whole bunch of SKG at .24-.25, John Paquet

To: goldsnow who wrote (730)	6/22/1999 9:26:00 PM
From: LaFayette555	Read Replies (2) \| Respond to of 1239

May not be relevant, but the natural gas market is somewhat detached from the oil market. Oil is a world-wide commodity in that it is easely transported in tankers and traded for delivery world-wide. Natural gas is a continental commodity - sold for delivery by pipeline - it's much more of a 'regional' market because of that. Very very few countries allow gas tankers to enter their ports because nat.gas got the bad habit of blowing up. For example such a gas tanker blowing up in the port of Toronto would actually level a good part of down town. Only the Japanese are in the habit of receiving tankers of liquified nat gas on a regular basis. Also the costs of liquification for transport and degassing for use are not negligible. Nat gas just does not travel well so it's market is domestic and greately influenced by the local climate : heating in winter and cooling in summer. Nat gas the commodity is a weather play mainly, but still related to oil because of possible substitution of one for the other in case the prices get really out of wack. But such substitutions reguire re-fitting of the furnaces/turbines, is expensive and takes time so the 2 prices are not well correlated. Spent 5 years working for a gas utility : go modern - go natural gas - go BOUM .. our competitors would say !!