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Enron Mail |
Daily Market Commentary October 19, 2001
FUTURES STAGE TECHNCIAL RALLY . . . Natural gas futures vaulted higher in busy trading Friday on the New York Mercantile Exchange. Traders noted that the gains were based on buying of a technical nature and not the result of any fundamental change in the supply demand fundamentals. Traders expect concerted scale in selling should November prices move towards $2.80. . . At the close of trading the November contract jumped $.195 to $2.681 and the December surged $.190 to $2.990 . . . "Locals got on the right side of the market and they were in the driver's seat. Trade and commercials saw their books out of balance and had to cover short positions," noted a New York floor trader. . . "Lots of stop loss (buy) orders went off, and traders were able to push the market to technical levels seen earlier. I don't think the market should be this high, but you can't fight the tape," he said. . . "It's a technical rally, not based on fundamentals. From a fundamental standpoint the government would have to start shutting down nuclear plants (to guard against terrorists), but there is no indication that will happen," he said. . . "Long term resistance is at $2.80 to $2.82, and there should be some selling if prices reach that high," he said. For the most complete information available subscribe to GasTrader at http://gastrader.net Bill Burson 120 Summit Blvd. Englewood, Colorado 80110 Tel (303) 761-7470 * Fax (303) 761-8662 (To be removed from this list send email to burson@gastrader.net)
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