Natural Gas, Crude Oil, Inflation, Utilities: Latest Moves – Video
Chris sits down with Jim Goddard on HoweStreet.com to review the recent price rallies in natural gas and crude. The long-term charts are still pointing to dramatically higher price actions. Natural gas has a lot of volatility, but the long-term charts indicate another push to the upside, potentially to the $7 or $8 level.
Lately, we’ve seen a lot of rotations in the energy sector. We saw increased fear about a year ago when many companies went under and when exploration came to a grinding halt. Now that the price has rallied up so quickly, the debate is revolving around the possibility that it may come straight back down. Questions being asked include: From which country should we import crude oil? What can happen if exploration doesn’t start to pick up? What will this do to the cost of oil/gas?
Trading-wise it has been a very rotational year for many people, and success depends on which trading strategies you employ. For example, indexes like the S&P 500 or the Nasdaq have been grinding up while sectors, like the transportation sector, the Russel, and small caps have struggled a lot. Most sectors remain off the highs from last year resulting in a highly rotational and sideways year if you trade sectors. If you are invested in the indexes, however, there has been a steady pace of movement to the upside.