Energy Insights

By: Meridian | Mon, Dec 11, 2006
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Regional conflagration. An impressive sounding phrase. But what does it mean? This week for my readers I take a deeper look at this strange expression and offer comments as to what it means and what it portends for the world of energy.


Repentance time in Bolivia. The Evo Morales brand of energy economics seemingly does not work. No surprise to us at Energy Central.


Russian hegemony takes another step forward. At Energy Central we are watching the bold moves of former KGB leader Vladimir Putin as he moves Russia forward. Plenty to talk about this week as this seemingly fearless man puts his footprint on the energy markets in Europe.


I'll see your move and I will raise you one. So said the EU Energy Commissioner this week. Russian hegemonic control over Nat Gas may not be a hop, skip and a jump away like Mr. Putin thinks it is. If the EU has its way, a pipeline system from Kazakhstan through Turkey and into eastern Europe will neutralize Mr. Putin's plans. Game on. Russian chess master Gary Kasparov would be proud. This week for my readers I offer up the details.


China and Iran embraced each other tighter this week. As America postures and posits on how the world should turn, China boldly marches on towards its goal of energy supply stability. At Energy Central we continue to watch China in awe.

Tick tock...tick tock....ho hum....the Oil market bided its time this week as traders wait for the OPEC meeting next week. What will OPEC do? Will the markets react?


Molybdenum. Element number 42 on the Periodic Table of Elements. Turns out this metal has a distinct connection to the energy industry. This week I elaborate on this connection and offer up 3 Molybdenum mining stocks for readers to ponder.


10,000 barrels a day of production from now until 2023. This is the stuff that solid long term investments are made of. That is a stock for your children's account. That Harvard education may be closer than you think. This week I unveil this unique opportunity for my regular readers. At less than $4 a share, this company has a net asset value of closer to $6. This asset value will grow as more reserves are proven up on the 80,000 acres of land the company controls. And did I mention that this company even owns its own refinery in Montana? This stock is a must see...


Crude Oil - Intermediate Term

Last week I specifically said...."... One thing to take note of is the positive divergence going back a couple months. Positive divergence is defined as a descending price accompanied by a rising RSI. This is typical for a commodity or a stock that is turning the corner..."

This week Crude held its positive momentum in choppy 2 sided trade as the world waits for the OPEC decision next week. Crude remains above its 18 day moving average and the RSI remains above "50". The next technical swing resistance point visible on the chart is $65. It is amazing how technical chart action can foreshadow price moves. Several weeks ago the TV channels were all abuzz with analysts forecasting doom and gloom. At Energy Central, we took a look at the charts and noted some positive divergence. We knew that higher prices were coming. You see, the charts tell the story. If more people would just study the charts, the world would be a different place. So, if you continue to glean your information from CNN or CNBC, give some thought to trying something new in 2007. Visit www.themarkettraders.com and see what we have to offer.

Natural Gas - Intermediate Term

Last week I noted..."... If we can take out the previous swing high at $8.25, we will rise out the top of the wedge and work dramatically higher. Some good cold weather will certainly hasten this process...."

This week thanks to forecast of warmer weather, Nat Gas fell out of bed. Yes indeed, Mother Nature can be the great equalizer. We now find ourselves right at critical support and we have to hold here, otherwise Gas related stocks will take a haircut. Watch closely....


And that's all for this week. Take full advantage of all that is happening in the world of energy. There is money to be made in the energy markets. Point your browser to www.themarkettraders.com and have a good look around the site. You'll be glad you did.

 


 

Meridian

Author: Meridian


www.themarkettraders.com

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