RE: Natural gas storage building to slow as cold bJust got my copy of The Schork Report, and he is predicting a build of the low 20's.......this guy knows his stuff, and that's why he charge over $1,000 month for the report.
Anyway, he also says that the last week was the coldest 42nd week in over 50 years, andto keep that in mind.
Personally, I firmly believe that that is the reason for the rally, the bullish build......but I think it's a headfake....
Mark this post, and we'lll come back to it tommorow.....today should not be huge movments either way.....tommorow morning will see a runup before the report, the report will come bullish, and a brief rally (lasting at most that day) will be followed by a pretty strong selloff, either starting Thursday or Friday at the open.
Fact is, with seasonal weather back until mid November, we're gong to be looking at builds back in the 50+ for the next few weeks.....
The big boys are going to use this bullish news to exit their positions that they've been building since LAST Thursday when the storage news pushed the Nov contract to $4.33......since then it's been one straight line to $5.15, and I bet it will top out tommorow around $5.25-$5.30...
Remember, because these things are a week late, for people in the know who have contacts that are in the storage industry, they can get almost real time storage data....in other words, they would have known last Thursday, when the build was 58 (which put us on pace for full storage by next week) that tommorow would be a realtively low build, and that would be construed as bullish, especially by the retail guys....I think most guys who aren't that knowledgable will think that after tommorow's build the drawdown will start.....and I don't think that's going to happen.