In a world and profession of wafflers, Charles Nenner is a rarity. He makes his calls and sticks to them. His targets for WTI crude oil and natural gas are price-specific and the come with expiration dates, making them useful both to traders and those who want to hold pundits accountable.
For crude, Nenner says it's going higher but not as much as most think. "We're going higher by a couple of bucks," he says, "we don't have the huge rally that everyone expects."
Geopolitics have no place in his view. Nenner developed a trading model based on cycles when working on the Goldman Sachs (GS) prop desk. The models worked "beautifully then and continue to work beautifully."
Nenner is a crude buyer at the start of April. His first target is $112.50/barrel. That's his play; to elaborate further would be a disservice.
For natural gas bulls, Nenner has a more aggressive stance. When he called for a sell on natural gas at $7.00, he put a $1.70 price target on the perennial "next big thing" in energy. At $2.21/BTU we're getting close.
"In one or two months we're going to have a cycle low" in natural gas, Nenner says. At that point he's a buyer of the commodity's related companies that have abused bulls so badly for the last few years.
Those are his levels and he's sticking to them. Check out his website and look at his track record. Criticize him all you want in the space below, but only if you're ready to admit you were wrong if and when he's right.