Joel Elconin – US Markets, Gold and the USD Reverse At Key Levels, Is This The Start Of A larger Pullback?
Joel Elconin, Co-Host of the Benzinga Pre-Market Prep Show and Editor of The PreMarket Prep website wraps up our Daily Editorials for the week by focusing on the reversal for most markets on Friday. US markets and gold reversed from key technical resistance levels while the USD bounced off support that could have seen it move to lows for 2023. Joel points to the rotation out of tech into financial stocks on the bank of big bank earnings as one factor but the overwhelming theme remains, market are range bound.
You have it all figured out, DT. Wonder what will happen when Canadians start shipping LNG from west coast.
You were the one that introduced me to the ETF, I only figured it out by reading articles on this subject and thought I would share. Thanks, DT
Five weeks ago I bought a very small position in a natural gas ETF. When I bought into this ETF the price had dropped 96% from its high of June 2022. It now has dropped 98%, effectively causing a 50%, loss. WOW, I’m glad it was only a starter position however I am undeterred as it is a learning curve and I fully expect to see a profit in the future.
What has caused this loss is the elevated price of oil. Instead of natural gas going up in association it has gone down in price because it is a byproduct of fast-growing regions of the shale patch which produce a lot of natural gas. The incentive to keep pumping oil in The Permian basis and elsewhere is high but the resulting gas is a growing nuisance. Natural gas is the big loser from OPEC’s production cut. With oil prices on the rise, oil producers are set to drill more. This for now is producing a glut of cheap natural gas. DT