David Fuller and Eoin Treacy's Comment of the Day
Category - General

    US Natural Gas Slumps as LNG Plant Shutdown Strands Supplies

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    US natural gas futures plummeted and European prices surged after the operator of a key Texas export terminal said it may take three months to partially restart the facility following a fire last week. 

    Gas for next-month delivery in New York tumbled as much as 19% to $7.008 per million British thermal units as the shutdown threatens to leave supply stranded in US shale basins. European futures on the Title Transfer facility hub in Amsterdam jumped 18% to $30.14.

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    Email of the day on central bank activity in the gold market

    Do you think there is much Central bank activity in the gold market? I can see countries like Turkey and Russia (?) selling to meet current requirements and on the other side countries ideologically opposed to the US wanting reserves which cannot be sanctioned. I guess data is kept secret but.....

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    Email of the day on shorting after taking profits

    Thanks for the very good summary of the market situation after your well-deserved break.

    I'm just puzzled by one thing.  You seem pretty convinced that the Nasdaq will continue to go down for at least a while.  Yet you say one should have a very small short on it.  Why only a very small short, why not a big one? Regards

     

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    Crypto Lender Celsius Stops Withdrawals, Fuels Market Slum

    This article from Bloomberg may be of interest to subscribers. Here is a section:

    Celsius Network Ltd. paused withdrawals, swaps and transfers after weeks of speculation over the sustainability of the outsized returns being offered by the DeFi lending platform, fueling a broad cryptocurrency selloff. 

    Crypto markets tumbled after the Celsius announcement, with Bitcoin dropping as much as 14% to the lowest level since December 2020 and other major tokens like Ether also falling sharply. Celsius’s CEL token was down about 50% to 19 cents as of 7:16 a.m. in New York Kong, according to pricing data site CoinGecko.

    The meltdown is the latest blow to DeFi, or decentralized finance, crypto’s answer to traditional finance, with more control and less costs for users but also less oversight and more risk. 

    Doubts about the sky-high yields backing products such as those Celsius offers have intensified after the collapse of the Terra ecosystem in May, and as tighter monetary policy across the world curbs demand for riskier assets. The CEL token promises “actual financial rewards,” including as much as 30% extra returns weekly, according to its website.

    While the collapse of the TerraUSD (UST) stablecoin captured most of the market’s attention, one of the project’s main attractions for investors had been its promised interest rate, set as high as 20% for UST deposits in the Terra blockchain-based lending project Anchor. Celsius was an investor in the project. Both revolve around the promise of super-high yields to keep up demand, which itself depended on a steady flow of new entrants feeding the system, or borrowing to pay the high rates.   

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    Email of the day on moving average calculations

    Not that there isn’t anything else to consider today, but I would appreciate more information on moving averages as discussed in the audio.  I realize there are several types that can be applied and they present different results. 

    Is there a standard across the board we should apply or is one appropriate for a type of chart and time period and not for another?  I just want to know how to apply what and when.

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    Please note - Return of Service

    I am flying to the UK on the 2nd and will conduct The Chart Seminar on June 6th and 7th. I am in meetings all day on the 8th and expect to fly back to the USA on the 9th. Full service will return on June 10th.