AM 1150 Kelowna - Radio Rallies & Reversals

Even though yesterday was flat for North American equity indicies, it was important technically in that both the DOW and S&P 500 held above their respective 200 day moving averages, and the TSX Composite remained above it's 50 day moving average. If we can continue to hold above these respective levels, more potential upside is in the cards.

Natural gas has had a nice run of late, so I thought I'd share a little more of Dr. Marc Bustin's and Marin Katusa's thoughts on the matter: They see the price of natural gas lingering around $5-$6 dollars. There's a lot of natural gas out there, and there's a lot of projects on line that aren't quite economical at current prices. As soon as prices start moving up a little, these projects will become economical and a large amount of gas will quickly hit the market keeping a lid on prices. For example, thanks to unconventional technology becoming increasingly streamlined and effective, there are thousands of wells that have been drilled, fracked, but not completed. Those wells can come on stream with between 2-10 BCF per day.

Tune in at 12:13 when I'll share Bustin's and Katusa's thoughts on the demand side of the equation.