Frank Petricca
Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.
Petricca’s Pick 01/08/2024
BUY NATURAL GAS FUTURES…
Natural Gas futures are in fact within my lower 25% parameter where Long-Term accumulation is recommended.
Clients and subscribers should call today for entry levels. 312-690-7763
On June 13th Spot natural gas futures traded $6.26 anticipating a hot summer when demand for electricity to run air conditioners increases.
As A matter of fact –
For the very first time, on August 28th 2023, the United States met more than of half of it’s electricity demand from natural gas. It encapsulated a summer during which gas
fired electricity generation grew dramatically.
Since the high punched out last June, natural gas futures have dropped significantly and back to my “window of opportunity,” if you will, where fundamental factors could change quickly.
The Longer-Term fundamentals are, in my opinion, extremely bullish.
The usage of this fuel is only getting bigger as it suits a better expectation for what is required from the world of fossil fuels as it is greener and more sustainable.
The production of Natural gas is being ramped up in response to a predicted demand for the fuel, and big growth in use from Asian countries such as India, Pakistan and Bangladesh, where the industrial sector serves as the main growth driver.
The biggest driver that will influence the gas price in an upwards direction is the drive to make this fuel the LARGEST PRIMARY ENERGY SOURCE on the planet. It is the fuel that is greener than its other fossil fuel compatriots and the production infrastructure is robust enough to become a key global fuel.
Many experts expect gas to become the largest primary energy source by 2034. It will also be the last of the fossil fuels to experience peak demand, which is predicted for 2035.
Dwayne Purvis, an engineering and management consultant based in Texas, explains that the gas price may be ready for a massive spike in the next three to five years.
He says, “for the better part of the last three years storage trended down as demand chronically exceeded supply, and the longer time frame, normalized storage volumes have trended downward for nearly 10-years as storage did not expand with production. These overlapping trends caused last heating season to end with only 12 days of supply shortage.”
Natural gas prices are trading at $2.77 today and up from the low made on December 11th at $2.21.
The warmer start of the winter which caused prices to plummet looks to turn much colder the next couple of weeks.
Winter weather can be a significant wildcard for natural gas prices, with cold temperatures bullish because of heating demand. Cold temperatures in producing regions can also interrupt production through freeze offs which can also boost prices.
THE 8-14 DAY TEMPERATURE FORECAST CALLS FOR ABOVE NORMAL TEMPERATURES!
Again, please call me personally for entry levels. In my opinion, natural gas accumulation could be an important addition to your investment portfolio. Clients and subscribers should also call for Money Management Strategies that are so important when one makes an investment of this nature.
Remember there are four important components regarding my strategies…
There is no question that more that 90% of commodity investors lose money…
And it’s true that my strategies also incur drawdowns…
But – What I offer is a way to be “in the market” when major commodity moves occur.
My strategies require one to maintain –
Those of you that have an interest in additional details regarding my strategies should call me personally. 312-690-7763.
Would love to hear from you.
In the meantime,
Have a great year trading!
Best
Frank
Questions? Ask Frank Petricca today at 312-690-7763.