Friday, 20 January 2012

Entry from 19th Jan 2012

This is the ratio of Crude Oil to Natural Gas (Using Dow Jones sub-Indexes) - 2 year chart;

I've  only just found this and it looks like a parabola to me, my impression  is that it's more likely to point to a forthcoming low in Natural Gas  than a high in Crude Oil but whilst the equity markets are making new  highs, Crude Oil is not.

You have to go back to 2002 to find a point when Natural Gas was cheaper, it's almost closed at the low of the decade today. 

NAtural Gas - 2002 to present;

The  indicator in grey beneath the chart is the Disparity Index, spikes to  the top of the range can point to highs, spikes to the bottom, lows.

Sentiment for Natural Gas is extremely low;


The price can only go so low, it would be interesting to know the average cost to extract it from the ground.

Is Natural Gas going to hit a low very soon?

It may be worth looking at Natural Gas futures here.

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