Bullish

Is Natural Gas a Buy?

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Since mid 2008 natural gas has been completely decimated by the market with the past eight months have been particularly bearish, cutting natural gas stocks in half.  Take a look at UNG for instance, down close to 60% from it’s June high of 12.32 a share.  So with natural gas bouncing off it’s all time low is it time to take a bullish stance on the commodity?  Recent options activity has spiked dramatically, with a call to put ratio of more than six to one.  With options activity a good forward looking indicator of investor sentiment, this is generally a very bullish … Read more

The Ban on Iran: Tehran continues with threats

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As promised, the European Union followed through with their promise to ban all oil imports from Iran today in an effort to halt the country’s nuclear development program.  The halt on oil was accompanied by a number of other provisions including sanctions on trading with their central bank.  Just days after the US, French, and British militaries sent a flotilla of warships through the gulf, the combined effect of the ban and military actions are sure to add pressure to our already tense relationship with Iran who reiterated their threat of a closure of the Strait of Hormuz.  Markets responded … Read more

Funds Bet Big on Agriculture

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Funds add Bullish agriculture bets on shortages Funds increased Bullish bets on agricultural commodities by the most in more than a year on signs of tightening supplies amid adverse weather conditions. In the week ended August 30, speculators raised their net-Long positions in 11 commodities by 18% to 915,341 futures and options contracts, government data show, the biggest gain since August 3, 2010. Holdings in Wheat more than tripled, Bullish Corn bets reached an 11-week high, and Coybean positions rose to the highest since November 2010. Corn prices have risen 70% in the past year and Soybean has gained 43%. … Read more