The chart above is a continuous nearby futures of Natural Gas, and currently reflects the April contract. As is self-evident, the market has recently retraced almost 61.8% of its 1999-2000 move higher. The Fibonacci rhythm measured from the top down looks relatively complete as well, and suggests at least a short term bounce of some magnitude is possible.

Now suddenly a major blizzard appears to be bearing down on the U.S. northeast. We think this will be an excuse for a rally that could easily move up 10-15% from current levels.

Longer term, we have no definitive opinion on natural gas, and we also need to warn that the chart above shows a far more dramatic pullback basis the continuous chart when one compares this to the actual performance of the April futures themselves (which several contracts out at the natural gas peak last December, never came close to the 1.01 high).

But for those quick and nimble to buy a few futures this Sunday evening in the electronic trading, we'd target to sell them somewhere toward 61.80-61.93.

It also may be of interest to some as well that because so much time (and thus timeliness) has now transpired, we recently released today three of our 2000 subscriber-only articles. These now appear under the public Earlier Articles section of the website. Perusing through them may give one a sense of the added premium level of analysis we provide to subscribers.

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Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.