We use the Commodity Futures Trading Commission Commitment of Traders report to generate daily buy and sell signals in the commodity futures markets and Exchange Traded Funds. Our analysis has been featured in many places online and in print and is disseminated nightly via the COT Signals, nightly email.
Monday, July 9, 2012
Commitment of Traders Confirms Natural Gas Reversal
Commercial Trader Selling Leads to Key Reversal
Commitment of Traders Report identifies commercial traders as main sellers on natural gas futures rally.
The natural gas market is awash in
excess supply. The warm summer has helped to push current stock through the
pipeline but the fundamental picture remains little changed. New technologies
have simply led to a glut of natural gas on the market.
The expectations for the natural
gas futures market can be clearly seen in the actions of the commercial
traders. They were the ones building the base as it traded down to $2 and below
and they are primary sellers now that the market has rebounded.
Building on their success in this
market we will also employ the technical key reversal in our creation of a new
short trade. We will place our protective buy stop above Friday’s high at
3.060. Nearest supprt is $2.500. I expect the market to trade closer to $2.000
information is not to be construed as an offer to sell or a solicitation or an
offer to buy the commodities herein named. The factual information of this
report has been obtained from sources believed to be reliable, but is not
necessarily all-inclusive and is not guaranteed as to the accuracy, and is not
to be construed as representation by Commodity & Derivative Adv. The risk
of trading futures and options can be substantial. Each investor must consider
whether this is a suitable investment. Past performance is not indicative of