Re: Nat. Gas: Weather Trading Not A Good Idea
Well this 17 year chart of the seasonal price trend of Nat Gas tells the story well. The strong periods of Nat Gas are not throughout the winter months as so many suggest. The strong periods are mid Feb into late April and again from mid July to mid Oct.
The weak periods for Nat Gas are from late Oct just when winter is beginning to get cold through to mid Feb with a bounce in Dec. And weak again from mid April to mid July.
There are business reasons for this just like Gasoline has its strongest period from mid Jan to mid May "BEFORE" the driving season. These businesses don't just sit there waiting for the weather to change or holidays to begin to raise prices. That's why they are "Futures" not Presents,lol....
And now with new technology recovering Nat Gas easily and cheaply the bullish seasonal times haven't been working as wells are capped everywhere with an oversupply. Next bullish seasonals are mid Feb to mid April so we'll see soon if they can finally move prices up. So far no cigars as prices continue to trade in channels and then breakdown and form another channel lower each and every time like clockwork.