No one wants to lose money, so traders trade in the now with little concern for tomorrow.
The fundamentals are starting to change for natural gas. This Is the beginning of the natural gas revolution in the United States. The billionaire club has been pushing hard for this, and now it appears they're going to get it. They're all positioned to make a lot of money aside from XCO. But clearly, they have invested big bucks in this equity and at much higher prices; $18ish. This issue is extremely undervalued based on the transformation that is to come in the natural gas sector. Obama and his administration is pushing along the natural gas agenda, albeit a little slow, but that's where we are headed. The US will help balance their huge trade deficit by exporting LNG to countries that are having to pay a much higher premium for their NG. This would obviously boost profits for all domestic suppliers as prices would rise.
The billionaire club has been waiting for a green light to buy XCO, and I think they might just have it.
Would you take $12-$14 tomorrow?
Let the record show that this call was made while XCO was at 7.21.
I really like the technical bottom within the symmetrical triangle this chart has formed.
I really wanted to buy more at 6.97, but it didn't hit my mark.
The volume over the last two days shows a really nice capitulation bottom for this pattern.