By Jim Roemer – Meteorologist – Commodity Trading Advisor – Principal, Best Weather Inc. & Climate Predict – Publisher, Weather Wealth Newsletter
- MidWeek Report – August 28, 2024
The short answer to whether or not we see a major bull market in natural gas due to a category 4-5 hurricane in the Gulf is NO… At least for now and the next few weeks. However, natural gas prices are likely oversold with U.S. production coming down later on.
Our WeatherWealth newsletter has advised energy traders that huge U.S. supplies, a recent bearish EIA due to cool weather last week, and our prediction that La Niña would be delayed, was NOT a bullish aspect for the natural gas market. At these prices, however, it is a bit too risky to become that aggressive and go short the market. Remember, however, nothing it too cheap or expensive in commodities!
Something is brewing in the tropics, but due to something we call the MJO index, combined with African dust, any major Gulf hurricane is not likely for now.
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Natural gas prices have collapsed more than 30¢ since we suggested, two weeks ago, that prices would not get above the chart line shown above.
What to do now in natural gas? Could we have a major hurricane later this fall? What about winter and how we out-forecast standard weather models that too many people believe?
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Thanks for your interest in commodity weather!
Jim Roemer, Scott Mathews, and The Weather Wealth Team
Mr. Roemer owns Best Weather Inc., offering weather-related blogs for commodity traders and farmers. He also is a co-founder of Climate Predict, a detailed long-range global weather forecast tool. As one of the first meteorologists to become an NFA registered Commodity Trading Advisor, he has worked with major hedge funds, Midwest farmers, and individual traders for over 35 years. With a special emphasis on interpreting market psychology, coupled with his short and long-term trend forecasting in grains, softs, and the energy markets, he established a unique standing among advisors in the commodity risk management industry.
Trading futures and options involve a significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.
