WAVES.OIL – LONG NAT GAS, SHORT BRENT

Contrarianism works because it is the closest to TIME. Now that NATGAS outlook is at an extreme, the LONG NATGAS – SHORT BRENT strategy is worth it’s weight in GOLD. The intermediate cycles have already turned up and we should have some confirmation on primary (multi month) performance cycles soon.

Moreover the way Fundamentalists are being quoted in New York Times, their sentiment is at an extreme against NATGAS.

“Natural Gas, Suddenly abundant, is cheaper”, “ This is a drastic collapse”, “There is a world bubble, a production glut”, “ Nat Gas is loosely connected to world oil benchmark ”

We also have news how Putin’s arm twisting and energy politics backfired now that Gazprom is witnessing declining fortunes. The fall in prices has devastated the company’s business model forcing it to close down own oil wells in Russia. Conclusions are all over the place. “Either the oil prices are going to surge or its not going to happen”. GAZPROM maybe in for some multi week dip, but any dip now on the stock should be the last bout of weakness before the multi year resurgence starts.

We at Orpheus are alone illustrating the performance cycle between NAT GAS and BRENT. The sentiment extreme seems to validate our pair and naked asset view that NATGAS is ready to outperform.

The latest update on OIL carries the UP BUT TOPPING view on OIL. We have conspicuous momentum non confirmations and conventional resistances right ahead. An alternate view suggests that OIL could push up marginally higher till 80. Overall view remains ready to reverse.

Enjoy the latest WAVES.OIL

* This is a perspective product and not a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager.

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ORPHEUS GLOBAL RESEARCH

WAVES.OIL is a perspective product published once a week. The report covers BRENT, WTM, XLE (Energy SPDR), top energy stocks, Natural Gas and related FUTURES. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools and sentiment indicators.

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