Thursday, December 19, 2013

Thursday Outlook -- Gold and NatGas

The breakdown in gold today is disappointing.  That said, my gold miners are holding up better than gold itself. But that's pretty small consolation.  We'll see what happens at the test of $1,180.  However, I have to say that I don't see anything to change the market's direction in the short term. Therefore, it's likely the short-term trend will remain intact until something changes.

I have to say the my nat-gas picks are doing well.  That's due in part to the record drawdown in nat-gas inventories, down 285 bcf from a week ago.


Stocks came in at 488 Bcf less than last year at this time and 261 Bcf below the 5-year average of 3,509 Bcf. That was enough to send the price of nat-gas springboarding higher. Natgas hit its highest intraday price since July 2011.

Remember my heads-up on Nat-gas last week? What do ya know.

Interesting note: This winter and next are both expected to be colder-than-average winters (according to the EIA). So we can expect nat-gas consumption to be up. But every oil company I talked to in San Francisco bragged about how they'd switched all their gas rigs over to oil rigs.  Hmm.  If you're in the nat-gas contract drilling business, I'd say you could make some serious coin as all these energy companies are caught with their pants down.

Just something to keep in mind. And now, 5 links of interest ...

1. Make a Silver Christmas Tree. Weird science you can do at home with the kids without blowing yourself up.

2. Households are adding to debt again. See the nifty chart ...


It's the first increase in U.S. household debt since before the financial crisis in the third quarter of 2008.

3. Astronomers have discovered a mini-planet orbiting a Jupiter-sized planet near another star. From the looks of things, the Jupiter-sized body went on a rogue path through the other planetary system, snagged this other planet out of orbit and now both are leaving the star behind.  It's basically the prequel to "When Worlds Collide."

4. Speaking of outer space, do you know there's a sculpture on the moon? And no, it does not say "Made In China".

5. Four Takeaways from the Fed December Meeting. The Voice of Sauron speaks.

Have a good rest of your Thursday.

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