Gravity

Amid the bullish combination of cold temperatures in the short-term outlook and warm temperatures in the long-lead forecast, natural gas futures rallied to their highest weekly close in five months Friday on continued short-covering by large speculative traders. The April contract received the biggest buying boost, trading 15.2 cents higher to close at $3.076. In doing so, it moved through resistance clustered at early-week highs in the $3.03-04 area.

Natural gas futures continued to defy gravity Wednesday afternoon as traders refused to sell the market despite the announcement by the American Gas Association (AGA) that only 64 Bcf was pulled from storage last week. That lack of selling pressure combined with the cold temperatures across much of the midwestern and eastern United States gave bulls the confidence they needed to boost the April contract higher on its first day as the prompt contract. April finished at $2.427, up 3.8 cents for the session and just off its high for the day at $2.44. At 71,577 contracts, trading volume was light.

The cash market again seemingly defied some of the laws of economic gravity Tuesday by rising about 20 cents or more at most points. And once again several traders were baffled at the continuing price strength in the face of pitifully few visible means of physical support.

Natural gas prices continued to defy gravity Tuesday, as traders added to their long positions in the hope that cold weather outlooks will be validated next week by plummeting mercury readings. The bulls did not have it easy, however, as they were forced to battle back from an early foray into negative territory on the day. Buy stops helped their cause, as prices began to rebound and by noon EST, bulls had notched a fresh one-week high at $2.87. The December contract closed just off that level at $2.852, up 6.1 cents for the session.

Natural gas futures continued to defy gravity Friday when a laterally nullified losses achieved earlier in the session. Afterposting an early low of $4.395, September rumbled higher to closeat $4.475 and in doing so, posted a gain for the ninth straightsession. Estimated volume was extremely light, with only 37,841contracts changing hands.