Very early vision: a natural gas powered future for the USA. [CLB]

As part of recent research I came across the charts of natural gas related companies and was astounded to find their charts completely different from the broader markets.  Core Labs was the poster child for this but all nat gas charts looked similar.  Basically they had sky rocketed and then pulled back to exactly the 61.8% fib in 3 waves.




I suspect that the downsloping channel will be resistance as the market has gotten used to big drops in these shares.  Thus, I think this will pull back the 61.8 fib of the recent rally from lower rail to upper and that happens to fall right at $100, a nice psych support and potentially mid channel if it happens quickly enough.

America needs energy.  For many decades now we have been getting it by trading our fake paper money to the middle east and then conquering those nations which resist this deal.  More recently we ramped up fracking in the US.  But each of these strategies have an expiration date IMO.  I think the middle east will just get too expensive to control with reduced government military spending that will be forced upon us by inability to fund it as well under higher interest rate scenario.  Fracking is dirty and even contaminates drinking water.  It is also expensive.  So I think that whole thing is just a stop gap.

The US has massive and I mean massive nat gas reserves.  They are the biggest in the world.  I think we basically used up everyone else's energy while it was cheap and easy and now we will have nat gas for ourselves.  We are seeing the shift happen at the edges for now but I expect it to pick up pace rapidly after oil prices finally bottom because then they are going to take off big time.  For example, did you ever expect to see container ships running off nat gas?  Well, they are now.

If you see nat gas plays heading in the opposite of traditional market plays then don't be surprised.  There is always a bull market someplace.  Buy the breakout of that top blue line on CLB OR wait for wave C of 2 to play out in the chart above (target price $100).  The next move up should be rapid since it would be a 3rd wave.