Professor Elam

Despite overbought conditions in nearly
everything, one sector does seem to march to a different drummer. After what
should have been the low, prices bounced in short covering and should now make
a higher low. MACD is falling and money flow has lessened at the bottom. I
would not expect money flow to go as negative this time as bottom fishers are
now alert to the nat gas play. But this bears watching. Where should buying
begin for the longer haul? One would think a ladder of prices below 5.00 and
lower would be a good start. 

Learning objective to students.  ONe must buy at lows and avoid jumping in with the crowd at highs. Nat gas is making a series of lows, look for a higher low to confirm a bottom. Nat gas is the environmentally friendly energy, Boone Pickens has pointed this out endlessly on tv.  But tv is now full of stocks and gold making new highs, you hear nothing about nat gas making a new low, AS the saying goes, no one rings a bell at the bottom.