Thursday, May 7, 2009

Futures and Options Trader, May 2009

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The Economist May 9-15, 2009

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Kiplingers May 2009

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A Look At GOLD (video)

Today we're going to take a look at the gold market. While many traders have been frustrated with this market for the past several month, it has in fact performed quite well given the generally negative feeling for most markets.

While the printing press is going at full-tilt in the US and the fact that most people are not involved in the gold market at the present time, it occurs to us that this market could indeed be setting itself up for a nice rally.

In our new video, I explain in detail some key levels to watch for in the gold market. If these levels are broken then you definitely want to take a position in the direction of the major trend.

CLICK here to watch the video

U.S. Gas Fields Go From Bust to Boom


CADDO PARISH, La. -- A massive natural-gas discovery here in northern Louisiana heralds a big shift in the nation's energy landscape. After an era of declining production, the U.S. is now swimming in natural gas.

Even conservative estimates suggest the Louisiana discovery -- known as the Haynesville Shale, for the dense rock formation that contains the gas -- could hold some 200 trillion cubic feet of natural gas. That's the equivalent of 33 billion barrels of oil, or 18 years' worth of current U.S. oil production. Some industry executives think the field could be several times that size.

"There's no dry hole here," says Joan Dunlap, vice president of Petrohawk Energy Corp., standing beside a drilling rig near a former Shreveport amusement park.
From Rock to Gas

Huge new fields also have been found in Texas, Arkansas and Pennsylvania. One industry-backed study estimates the U.S. has more than 2,200 trillion cubic feet of gas waiting to be pumped, enough to satisfy nearly 100 years of current U.S. natural-gas demand.

The discoveries have spurred energy experts and policy makers to start looking to natural gas in their pursuit of a wide range of goals: easing the impact of energy-price spikes, reducing dependence on foreign oil, lowering "greenhouse gas" emissions and speeding the transition to renewable fuels.

A climate-change bill being pushed by President Barack Obama could boost reliance on natural gas. The bill, which could emerge from the House Energy and Commerce Committee in May, is expected to set aggressive targets for reducing emissions of carbon dioxide, the most prevalent man-made greenhouse gas. (more)

Natural Gas down trend over?

“The drop in natural gas prices,” writes Chris Mayer, “may be one of the best things to ever happen to natural gas long term. That’s because natural gas is taking market share from coal. Low prices bring new buyers to the table.

“I was thinking of this after reading a piece about the big natural gas discovery in northern Louisiana. The so-called Haynesville Shale could hold 200 trillion cubic feet of natural gas. That is about 18 years worth of current U.S. oil production. And those estimates could well be too low.

“This adds to a list of huge new fields in recent years in Texas, Arkansas and Pennsylvania. One study says the U.S. has enough natural gas for 100 years of current demand.

“Well, this is one heck of an opportunity. You looking to cut our dependence on foreign oil? Think natural gas. You want to reduce carbon emissions? Think natural gas. In fact, natural gas is setting up to be the fuel of choice over the next several years. It is already cheaper than coal in most parts of the country. Already, of the 372 power plants we’ll build in the U.S., 206 will use natural gas, versus only 31 using coal. Natural gas is going to eat coal’s lunch.”