We’re having loads of fun with What the FICC?
Spencer and I talk about high-level intermarket trends, whatever markets catch our attention, and things that fly under the average investor’s radar.
I’m a big fan of Bill’s and the entire team at Blue Line – a consistent source of clarity. And I know Spencer’s dying to discuss yields…
It’s going to be a good one! Be sure to tune in tomorrow at 11:30 a.m. ET.
If you missed yesterday’s show, here’s a quick recap…
Natural gas is carving out a six-month base.
Here’s the evidence in favor of an upside resolution:
- commercials unwind a historic long position
- volatility contracts
- seasonal tailwinds pick up
- momentum holds within a bullish regime
So, is natty gas about to rip?
My bias is higher. But an opinion isn’t necessarily a position.
Currently, I do not hold a long position in either natural gas futures or the ETF $UNG.
If and when the front-month contract decisively breaks above 2.85, my conviction will strengthen into action.
It’s a waiting game for now.
I doubt we’ll have to wait long, though, as the data favors a breakout in the coming months.
Bigger picture: The team likes energy.
It’s hard not to when energy names continue to catch higher, from E&P names to coal stocks.
Here’s one of my favorite coal setups we shared yesterday, Alpha Metallurgical Resources $AMR:
As long as AMR holds above 178, I want to own this stock with an initial target of 225 and a secondary objective of 300.
Breakouts in the peripheral areas of the energy space – such as AMR or Uranium bellwether Cameco $CCJ – support broadening strength and further upside potential for the entire sector.
Also, don’t forget to tune in tomorrow as we welcome Bill Baruch to the show.
I’ll see y’all then!