Trendlines, like exit polls for statisticians, can tell marketwatchers a lot about the direction in which things might beheading. And while some statisticians in political arena might bewell-advised to take a closer look at their rules and procedures oflate, technicians in the natural gas arena have had a pretty easytime forecasting market moves. Since smashing into long-termtrendline support on Oct. 31, the market has resumed its uptrendand erupted a dollar higher, leaving even the mostdyed-in-the-wool bear traders second guessing their stripes.December futures finished strongly again Wednesday, up 25.7 centsat $5.338.
Direction
Articles from Direction
Bowing to Lack of Support, Swing, April Prices Fall
Incremental prices for the last day of March, finding little tono support from any direction, did the natural thing: they fell byanywhere from about a nickel to more than a dime. April bidweeknumbers also slid a bit further.
Power Marketers Demand More Interconnection Fixes
Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) last week said greater reforms wereneeded to protect new generators seeking to interconnect to thepower grid. It asked the Commission to issue a policy statementthat would “comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.
Marketers Demand More Interconnection Fixes
Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) said greater reforms are needed toprotect new generators seeking to interconnect to the power grid.It has asked the Commission to issue a policy statement that would”comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.
Prices Finally Find a Direction to Move, And It’s Up
After several successive days of stagnation, the cash marketfinally was able to use a little bit of screen support andexpectations of colder weather moving into major market areas toget out of its rut Tuesday. Prices ranged from flat in theSouthwest basins to more than a nickel higher at New Englandcitygates and for intra-Alberta and several related western points.Most quotes rose between 3 and 5 cents.
Soaring Screen Leads Cash in Same Direction
After a lengthy absence, “following the screen” was back invogue Friday among trader explanations for cash market movement.”How else are you going to justify rising Northeast prices for whatis normally a lower-demand weekend period?” asked a largeaggregator. A stormy front was moving beyond the East Coast intothe Atlantic, but the temperatures it left behind were still on themild side for December, he observed.
Bearish Fundamentals Remain King Following Early Rally
Technical factors can, and often do, send prices hurling in adirection contradictory to what underlying supply and demanddictate. While this confounds dyed-in-the-wool fundamentalists anddelights technicians, it can also backfire. Yesterday was one ofthose days.
Buccaneer Is First to File in Race to Florida
While a FERC filing does not a pipeline make, it’s still a step in the right direction. Williams’ Buccaneer Gas Pipeline last week became the first of three competing projects to serve Florida power generation demand to file with the FERC.
Cash Continues to Backtrack from Last Week’s Rise
Despite the sharp change in market direction the past twotrading days, with prices falling as much as 12 cents at somepoints Monday, there was no consensus on whether this is thebeginning of a lengthy slide or just a breather before anothersurge upward.
Futures, Options Vie for Traders’ Attention and Market Direction
Frenetic activity continued in the natural gas pit yesterday ina see-saw battle that produced two rallies, two dips and oneenormous 11.5-cent trading range. By the time the dust had settledand the orders were processed, the battle-weary August contractmanaged a 3.2-cent advance to settle at $2.574 on its penultimatetrading day.