Natural Gas: Put It On Your Radar Screen

Figure 1 is a monthly chart of natural gas (cash data) with the “next big thing” indicator in the lower panel; the “next big thing” indicator quantifies those technical factors typically seen prior to secular trend changes in an asset.

Figure 1. Natural Gas/ monthly

As you can see from this very long term view, natural gas has sold off rather nastily over the past eight months. Prices have found support at a long term trend line. While it is difficult to know for certain that this trend line will “hold”, this is the kind of asset that picks my interest - down and out and off every one’s radar. The “next big thing” indicator does not suggest a long term secular trend is at hand, but I am willing to wager that natural gas isn’t going any lower for a while.

Put natural gas - and equities tied to natural gas- on your radar screen.

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