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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: jimsioi who wrote (24743)	1/6/2003 7:46:42 PM
From: isopatch	Respond to of 36161

Golds cool, but gassers act well vs sharp NG drop of over 40 cents in the Feb NYMEX contract. bloomberg.com Know Jims and some others here are familiar with it. But, for threadsters not conversant with the chart below, it reflects not only the drop during regular trading today but also the subsequent 8 cent gain posted on access (since the close of reg trading). futuresource.com On access numbers: mrci.com Like these quick sharp corrections that usually last a day or two. It's price action that evidences incipient Bull Market conditions. Am not a waver. But do watch LT structure to confirm the IT work I've always preferred. So, EWers:) Think NG (the commodity) began primary wave 1 of a cyclical bull market, after it's cyclical low, last summer. In wave 1 environments, it's to be expected that only a very few energy investors/traders have been accumulating serious positions in the NG stocks. Wide spread recognition of the primary trend has to wait for Wave 3. And sure enough, we've not only seen the lack of interest and reluctance to position NG stocks on this thread, but also on BBR where there's the focus is almost exclusively on energy stocks. Don't read that thread very much. But found this item interesting as an anecdotal sentiment indicator. <we have not had much of a response yet, lets see if interest picks up this week> Message 18391330 Have no idea what the work of other professionals shows. Barely have time to get my own stuff down (leaving all to little time for my sybartic life style.<g>) Seriously, beginning with a lot of hands on experience with the energy stocks as a broker (in the latter 70s bull run, AND as an independent professional trader/investor (1986 to date), my work has convinced me major cyclical turning points in the NG sector are led by the commodity for 3 to 6 months before the stocks themselves begin their sector bull market. Skeptics, doubters and nay sayers claim there can be no bull market in the gassers without a healthy economic recovery. I disagree. Even in a stagnant to moderately declining economy, in the context of a policy of currency debasement, along with the high decline rates occurring in many NG wells & fields, AWA the continuing low level of new drilling for the resource = a nice cyclical bull market for NG stocks. And, we are still very early in Wave 1 for the equities. The earliest 3 could arrive is next Summer, after a correction - most likely during the Spring shoulder season. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Many of you have asked me, either in posts or via PM, what NG stocks I like. So, this post might be worth saving for those of you who are interested or that I've not had time to respond to. And those who aren't, can bash me with it if I'm completely wrong and there is no bull run in the NG stocks. He, he, he... The PF leader, and largest gasser position (as it was all of last year) is EENC which BO to a new 52 week high today: finance.yahoo.com CRZO, although up since the position was filled about a month or two ago, had a sharp dip today which is common to small, lightly traded, stocks. finance.yahoo.com ROYL, otoh, snapped back nicely near end of the day to recoup almost all of it's earlier decline. Resistance @ $6 is containing it for the very ST. finance.yahoo.com PQUE also came back on the close. finance.yahoo.com best regards, Isopatch