Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Friday, April 18, 2008

More Good News on Natural Gas

Commodities took a swan dive this morning as the U.S. dollar rallied hard. Now, the reason being touted on CNBC for the rally borders on laughable -- the "worst may be over" for the banks. But, you can't argue with the rip-roaring rally the dollar enjoyed this morning.

But after selling off, commodities have started to come back -- led by natural gas. Red-Hot Commodity ETF subscribers are long natural gas through the United States Natural Gas fund, of course. Oil and oil stocks (like the XLE) followed shortly afterward. Gold is still trying to walk it off, but don't give up on the metal just yet.

Apparently (so I hear) the spark for the rally in natural gas was this story in the Wall Street Journal ...

Global Trade Boosts Natural-Gas Price
Natural-gas prices in the U.S. have risen 93% since August as power-hungry nations compete in a global market that scarcely existed five years ago. The trend has profound implications for the troubled U.S. economy.

Don't let one day swings in anything -- natural gas, oil, gold, you name it -- change or even make up your mind. Isntead, watch those weekly trends and the fundamentals; that's about the only place we can find honesty on the Street today.

Oh, and as for the dollar's rally? Well, the greenback is still up, but it has given back a lot of those gains ...We'll see what Monday brings.


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