Wednesday 30 March 2011

Crude Oil and Natural Gas - 180 Degree Apart !!!!!!

It has been seen that in March 2011 - Net Position of Large Speculators on Crude Oil has touched a record high.
This is since the 90s.
The chart seems to have gone parabolic.
There is a sense of feeling in the mkt that oil could head to $200 or higher.
This is a recipe for disaster as a plunge like 2008 could causes massive loses to the Long Oil traders.
Sentiment seems to have reached an extreme and it is now time to be alert on the upward movement in crude and take a neutral or bearish stance.


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The exact opposite has occurred on Natural Gas.
This seems to be the 2nd most hated asset after DXY.
It has been seen that in March 2011 - Net Position of Large Speculators on NG has touched a record low.
The crowd is bearish and short this market while LONG on Crude.
The chart seems to have gone parabolic but in the downward direction.
This is since the 90s.
Again this is a recipe for disaster as the sentiment has reached an extreme on short NG.
It is time to be alert for a rise in NG and it would be wise to take a neutral or bullish stance on NG.


Net longs have increased exponentially on CRUDE while net shorts have increased exponentially on NG.


I would recommend you to the exact OPPOSITE.







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