Daily Market Commentary October 22, 2001

TRADE BUYING SETS OFF STOPS . . .

 Natural gas futures scored triple digit gains in active trading Monday on the New York Mercantile Exchange. The last three sessions have left many traders unable to reconcile the huge price advance with the poor underlying fundamentals. After early selling interest subsided, concerted buys by
major trade and commercial houses triggered stop loss buying and prices surged to finish the day at session highs. Short term traders see a conditional price advance tomorrow. . .

 At the end of the day the November contract roared ahead $.126 to $2.807
and the December tacked on $.097 to $3.087 . . .

 "Trade and commercials were early sellers between $2.75 and $2.68, but
Salomon Smith Barney, Paribas, and (E.D.&F.) Man all bought at $2.65, and when prices broke above $2.75 there was aggressive short covering and that
took prices to $2.80 almost right away," said a New York floor trader. . .

 "A lot of traders are saying they can't believe the market (given the fundamentals)," he said. . .

 "If the market opens tomorrow at or above $2.75, it will probably gap higher," he predicted. . .



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