Nat Gas Detonates
Traders bought natural gas like there was none left in national storage
depots, first driving the price up its .75 limit on overnight Access trading,
and then nearly doubling that gain to a session and all-time high of 8.800.
Indeed, record gas prices have been driven higher recently by concerns that an
early and severe blast of cold descending on the country will sap stockpiles
already standing significantly below levels thought adequate to meet the demand
of even an average winter. Tuesday’s American Gas Association report (AGA) on
the national stockpiles situation came in slightly greater than expected,
spurring a brief dip to the session’s low but the “injection” into
storage figures fell far short of beginning to replenish depleted stores of the
heating fuel.Â
The January contract
(
NGF1 |
Quote |
Chart |
News |
PowerRating) is the leading member of the Momentum-5
List and shot up nearly 20% on the open. Overstretched, the contract gave
back gains after marking a new contract record and settled 1.010 higher at
8.4858.Â
Other contracts in the energy complex headed south initially, making good on Implosion-5 List
readings on their way to log new four-month lows. A report from the Department
of Energy showed inventories rose, confirming this week’s API report. But a 3.6%
rally in the substitute to natural gas–heating oil–helped break four-day
losing streaks in crude oil and unleaded gasoline, leaving their January
contracts .32 and .0199 higher, respectively. Â
In financial futures, Greenspan’s speech yesterday implying that the economy
may have slowed too much, forwarded traders’ belief that the Fed may lift or
lower its tightening bias and possibly lower interest rates as early as January.
March T-bond
(
USH1 |
Quote |
Chart |
News |
PowerRating) and 10-Year Notes
(
TYH1 |
Quote |
Chart |
News |
PowerRating) both posted hefty gains
to new highs, making good on their Momentum-5
List readings. T-bonds rallied 26/32 to 103 18/32 and 10-year notes gained
20/32 to 103 25/32.
Stock index futures took the day off after another shot across the bow from
Nasdaq 100 component Apple Computer. The second warning in as many months
chilled the market again and cast some doubt on whether yesterday’s record
Nasdaq rally signaled a market bottom.
Nasdaq 100 futures
(
NDZ0 |
Quote |
Chart |
News |
PowerRating) closed 115.50 lower at 2725.00,
December S&P futures
(
SPZ0 |
Quote |
Chart |
News |
PowerRating) fell 20.20 to 1345.00 and Dow futures
(
DJZ0 |
Quote |
Chart |
News |
PowerRating) lost 212.0 to 10,678.0.
From the Implosion-5 List,
December dollar index futures
(
DXZ0 |
Quote |
Chart |
News |
PowerRating) tanked after it became apparent
that the rally in stocks would not continue. Basis December fell 1.20 to 113.26.
Lean hogs and orange juice also made good on Momentum-5
List readings.Â