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re: BOIL has become predictable

Posted on 1/22/15 at 12:45 pm to
Posted by sneakytiger
Member since Oct 2007
2472 posts
Posted on 1/22/15 at 12:45 pm to
Big number year on year, but storage levels are right at the 5 year average and last year's winter didn't really hit hard until late Jan and into Feb.

Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/22/15 at 12:49 pm to
Interesting take here:

LINK

On another unrelated note. Anyone hear from LS Use The Force? Asking out of concern. I took a fairly large hit also, just want to make sure he's o.k. Come back Use The Force, let us know you're o.k.
This post was edited on 1/22/15 at 2:45 pm
Posted by jlu03
San Diego
Member since Jul 2012
3320 posts
Posted on 1/22/15 at 4:55 pm to
Is that a Seeking Alpha article?? #FacePalm

IG you are better than that.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/22/15 at 6:00 pm to
I know, but the pair trade (long oil/short natty gas) based on the oil/gas ratio is a very interesting idea.

The guy actually has an interesting idea and thought it out pretty well. I'm not going to trade it, but I think it's worth a read for anyone investing in natty gas. The ratio might be a piece someone might want to incorporate in to their decision process.
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7132 posts
Posted on 1/22/15 at 6:06 pm to
quote:

The ratio might be a piece someone might want to incorporate in to their decision process.


while you, russian, inkjet, and a few others might "incorporate" this little nugget, I, like most of the other OT refuges on the MT board, do not put forth anywhere near that much mental effort into our investing decisions. most of our decisions are based on whim and shite we read on message boards.

but thanks though, I hope you know how to put that info to good use

Posted by sneakytiger
Member since Oct 2007
2472 posts
Posted on 1/22/15 at 7:09 pm to
His thesis is that the ratio of oil to NG prices should return to a recent historical mean? I'm not buying it. The more you expand your time frame on that analysis the more you prove that crude and gas trade independent of each other. Penny for my thoughts though...
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/22/15 at 8:55 pm to
I just threw it out there.

Anyway, yes, I do spend some time on this because I rarely make small plays. So, at least to me, my plays are larger and worth spending some time on. I don't however spend time on the fantasy stock pick stuff. Or fantasy anything. Again, this hasn't been a good 12-18 months for me. I've backed off a bit to regroup and am admittedly undecided where to go. Not only on the natty gas stuff, but on my entire investment strategy, including my "safe" money. I think last year my losses were $33K. Not a big deal, but the largest annual loss I've ever taken. And it would have been significant larger but I hit a six digit winner on some silver options.

I am 100% out of commodity futures and options right now. Notwithstanding some comments on here about the relationship of interest rates and inflation on commodities, they have been extremely difficult to trade, many times doing the exact opposite of what should happen. My NG options will expire worthless 1/27. I do own some physical pm's, but that's it for now. I'm in a significant cash position, and my only trades are acquiring more CAK, NBG and every once in a while AIVI. I think copper demand presents a long term opportunity. I'm considering it. I had looked at going long oil. I'm still looking. My conservative stocks I'm not adding to as I do think things are overvalued.

I look at it as an exercise in discipline. Or at least waiting to see what exactly is happening. Because I can't even begin to venture a guess except I think I need to watch for a while. I will say this. I do have the discipline to stop and evaluate, and a lot of other active traders just keep going. I think stopping is good for me right now.

White perch? Looks like a crappie to me.

Back to LSUsethe Force. I wish he'd come back on here and let us know he's all right. No one is blaming him, and frankly I'm a bit worried. He seemed pretty down when the bottom fell out. I sincerely hope he's o.k. Throw this most recent energy debacle out, and he helped me hit some decent gains. The guy put a lot of time in to natty gas. Calling Henry Hub. Pricing models between spot and etf's.
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 1/22/15 at 9:09 pm to
quote:

Back to LSUsethe Force. I wish he'd come back on here and let us know he's all right. No one is blaming him, and frankly I'm a bit worried. He seemed pretty down when the bottom fell out. I sincerely hope he's o.k. Throw this most recent energy debacle out, and he helped me hit some decent gains. The guy put a lot of time in to natty gas. Calling Henry Hub. Pricing models between spot and etf's. 


I agree. I hope he doesn't think people here will blame him. We're all adults and make our own decisions. That being said, I know he had quite a large position in this, and I truly hope it didn't set him back too bad. I've seen him post on a few other boards, so I know he's still around.

This thread was gangbusters until 2 months ago.
This post was edited on 1/22/15 at 9:10 pm
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/22/15 at 9:21 pm to
Glad to hear he's still around. Maybe this is his way of stepping back.

Money is just money. I never really made any real money until I learned money always follows when you do the right thing. And learned money is not the most important thing in life. Only then did I start to make what I consider real money. It's nice. But not at the cost of everything else.
Posted by L S Usetheforce
Member since Jun 2004
22763 posts
Posted on 1/22/15 at 10:13 pm to
Didn't see me back guys..... Ive taken hit like everybody else who trades energy right now.... I played some golf this week and I read everyday..... We are all gonna be OK.... Ive lost some short turn trade ability with my stack..... But when lnglf hits.... And it will..... Im gonna frick up ugaz and uwti world..

I guinenely enjoy this thread but talking ain't gonna dig out the energy sector right now so hang tight.

And I do take blame we were rolling and the Saudis fricked our world up, I never took into consideration their power in this market and that pisses me off..... I failed you guys there.

I need 6.50 in ugaz to walk scott free with all profit from 2013-14.


This post was edited on 1/22/15 at 10:27 pm
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 1/22/15 at 10:18 pm to
Let me know when to get into lnglf
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/22/15 at 10:37 pm to
Good to see you back.
Posted by jlu03
San Diego
Member since Jul 2012
3320 posts
Posted on 1/23/15 at 8:56 am to
Next two reports should have lower than average withdrawal numbers. DGAZ here I come.

ETA: In @ 6.36.
This post was edited on 1/23/15 at 12:38 pm
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 1/23/15 at 10:52 am to
You'd like to think so, but this has become a crap shoot. It has not reacted predictably at all.
Posted by secondandshort
Member since Jan 2014
1028 posts
Posted on 1/23/15 at 11:49 am to
Do you think there's any chance the cold in the Northeast gives UGAZ a bump next week?
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 1/23/15 at 1:02 pm to
Usually cold weather isn't reflected until the following week when the injection report comes out. Which means the mild weather this week will be reflected next, so IMO Ugaz will she more downward movement until prolonged cold weather comes along.

Of course that's my opinion, and if you would've done the exact opposite of my opinion over the last 2 months you'd have made a lot of money.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12577 posts
Posted on 1/25/15 at 8:25 am to
This next week has a few winter storms in the NE. Some are supposed to lay 1-2 ft of snow. Hopefully we'll get a play off of this for the people that are long UGAZ.
Posted by jlu03
San Diego
Member since Jul 2012
3320 posts
Posted on 1/25/15 at 1:46 pm to
quote:

This next week has a few winter storms in the NE. Some are supposed to lay 1-2 ft of snow. Hopefully we'll get a play off of this for the people that are long UGAZ.


I don't think those storms will be enough to move NG upward. I think we could see NG sub 2.70 this week as there isn't an artic blast in the near future for a good portion of the country. Just too much supply and mild winter so far. I'm on the DGAZ train so there is slight bias but JMO.
Posted by southernelite
Dallas
Member since Sep 2009
53177 posts
Posted on 1/25/15 at 7:12 pm to
Looks like the NE is going to get slammed this week. Maybe UGAZ this week?
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 1/26/15 at 8:58 am to
Buh Bye February.
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