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Typical Day of an Energy Trade Floor Meteorologist


FreshAJ

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In my previous posts above, I discussed the typical day of an energy trade floor meteorologist in two parts: Part 1 and Part 2. In my recent post, I talk about why I believe Energy meteorologists should be careful about using the words “bullish” or “bearish” on the Energy Trade floor.

Have a look if your'e interested: http://www.freshaj.com/bullish-vs-bearish-on-the-energy-trade-floor

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  • 5 weeks later...

Hi there, I can't speak for all trade floor shops and what they are willing to do. When I was on the floor, I was told we were not allowed to have personal Nat gas futures accounts through the company because we could bias our "fundamental advice" on how we put on our own individual trades. There is some truth to that. But in smaller shops and hedge funds there are many nat gas traders that also do the fundamentals. So to your answer your question, it really depends on the shop and the trade staff. Although, we could trade weather futures on the CME...don't think there's a problem with that.

I think we'll see prompt trade under $2 if we keep seeing red on the maps. There's just an oversupply of Nat gas right now with too much of a storage surplus and no real demand out there. But, I do think many traders believe "winter is over" and they will soon start focusing on Summer. But bottom line, we need to get rid of the supply overhang...or else summer will be a dud too. The summer needs to have major sustained heat waves in the Midwest/East, and a couple of major Cat 4+ or Cat 5 hurricanes slamming gas facilities in GOM. Otherwise, gas should remain quite low for a while until they can get more gas out of storage and/or have the producers halt production. Just my two cents.

Thanks

AJ

Are you prevented from trading NG futures on a personal account? What is the sentiment in your shop over this you unrelenting slide in prices? Are they convinced we will see the prompt trade below $2 by end of March or will we have to wait until September?

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