After dropping a quick nickel in Thursday’s after-hours Accesstrading session, natural gas futures did an about-face Friday astraders learned of the first named storm in the 2000 Atlantichurricane season. The September contract was fast out of the chute,notching a gap-higher open on the daily charts and climbingthroughout the morning. However, after reaching fresh five-weekhighs at $4.39, it came under steady profit taking, which trimmedgains into the closing bell.

September finished 4.6 cents stronger at $4.296 and Octoberfollowed suit with a 3.8-cent advance to $4.29. Meanwhile the outmonths, unfazed by the hurricane threat, were lower on the day. Onbalance the 12-month strip dipped 1.5 cents to $4.055 and thecalendar strip 2001 was 3.3 cents softer at $3.853.

According to the U.S. Tropical Prediction Center based in Miami,tropical depression three became Tropical Storm Alberto atapproximately 9 a.m. (EST) Friday. As of press time Friday, Albertowas located in the Eastern Atlantic, just off the coast of Africa,and was moving west at the speed of 17 miles per hour. Maximumsustained winds were 60 miles per hour with further strengtheningexpected to make it Hurricane Alberto sometime over the weekend.

“It’s hurricane season and it didn’t take long for the market toremember what to do,” said George Leide of New York-based RaffertyEnergy Group after watching the market spike Friday morning.”Nobody can tell what this thing is going to do, but you don’t wantto be short in the meantime,” he reasoned.

And while he acknowledges that the threat of hurricanes willcause temporary rallies and dips over the next several months,Leide maintains his disciplined technical approach. “You still haveto sell this market on moves up to resistance and buy it close tosupport. We saw good resistance [Friday] at the $4.36-41 gap fromthe continuation chart. But if the market can move through thatarea, you will likely see a move to $4.53-55.”

On the downside, Leide sees minor support at $4.17 ahead ofcongestion in the $4.09-11 area. However, after exiting all of hislongs in the high $4.30s [Friday], he is looking for a retest of$4.00 to re-enter the market. And if the September can retestpsychological support at $4.00 this week, Leide would recommendbuying September futures while hedging downside risk by selling$4.00 and $4.25 covered call options.

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