Don’t get so distracted by Greece, that you miss what’s happening in nat gas.
Mike Harris of Campbell & Co says that coming off Thursday's dramatic move higher, Friday’s close could be critical for the whole nat gas trade.
"$2.55 is now a crucial level," he says. We’ve flirted with that level a few times but nat gas has never gotten above it.
“If nat gas can settle north of $2.55, shorts may start covering and it could be the beginning of a new trend. Nat gas has been in a downtrend but above $2.55 it could begin an uptrend,” he says.
And Harris sees a fundamental catalyst that could support the technical analysis.
“A smaller than expected build in supplies recently annouced by the EIA suggestsutility demand is rising,” he explains. “The switch from coal to gas may be more pronounced than people expected.”
Fast Money Trader Peter Najarian, co-founder of OptionMonster adds that options investors are making similar bets.
“They’re attacking to the upside. Whether it’s Cheniere , Noble , Ensco or other nat gas producers, institutional money is buying calls. It's been the hottest sector all week."
