Wednesday, November 19, 2008

And now a Fourth Touch of that $6.50 Level by Nat Gas

Clarity comes from knowing. If the readers here were Associates who retained me, well I would not be working so hard to get them to investigate and DYODD & DYOHW.

I was directly asked, what I meant by my last $NATGAS chart. I meant, INVESTIGATE !
Many factors bear on a market like NAT GAS. The "Weight of the Evidence" is most often made graphically visible via charts.

I mean that the $6.50 Level has been touched and rebounded off of FOUR TIMES.
The price of gas has made drilling uneconomic. That does not matter if no one wants gas. Fertilizer is made from Nat Gas, as is chemical feedstock. Fuel & energy feeds off Nat Gas, as does Oil Sands production. Natural Gas is obviously worth something.

Given the uses of Nat Gas, and its consumption, it will have to be supplied.
Such as the cost of production is, there is no excess to be dumped on the markets, so
unless the price goes up, gas wont be produced. Unlike some products, NAT GAS was never much of a by-product, so if the cost of production is not equalled or exceeded by the market price, it will not be produced.

Such understanding, if you possess it, will do you well, so that you can confidently investigate and provide your own market research, rather than being
dependent upon the opinions of others, good, bad or indifferent, mine included.

Good Luck,