NG Dumb Question 2: Steven Schork and the 1st/13th Month spread.

B

bobbymak880

Steven Schork said in his blog:
http://www.cnbc.com/id/43564220

"we graphed the return on holding natural gas inventory, as measured by the 1st/13th month calendar spread (aka… spot month/red month) of Nymex Henry Hub natural gas futures."
The disposition of supply/demand metrics for gas can be inferred from the trendline running through our scatter plot of the spread and EIA estimated storage.

Why use the 1st and 13th month to analyze a spread?
Thanks!
bmak
 
There are some very good NG guys who occasionally post on this board, and I hope one of them adds some color for you.'

Personally, I find Schork's stuff to be very prescient and of very high quality, and I used to subscribe to his newsletter.
 
Quote from bobbymak880:

Steven Schork said in his blog:
http://www.cnbc.com/id/43564220

"we graphed the return on holding natural gas inventory, as measured by the 1st/13th month calendar spread (aka… spot month/red month) of Nymex Henry Hub natural gas futures."
The disposition of supply/demand metrics for gas can be inferred from the trendline running through our scatter plot of the spread and EIA estimated storage.

Why use the 1st and 13th month to analyze a spread?
Thanks!
bmak
More...

Hello,

Not sure, but did he give a definitive number of cents that the research produced ?

Thanks
 
A one-year spread. Definitely. But what to make of it? I'm trying to be a better trader and want to learn more about this spread.

Also, so far no one has a definition for NG "shoulder season"!!!
 
Quote from bobbymak880:

A one-year spread. Definitely. But what to make of it? I'm trying to be a better trader and want to learn more about this spread.

Also, so far no one has a definition for NG "shoulder season"!!!
More...

http://tinyurl.com/3f4ox3x

I am pretty sure you are Steven Schork and trying to create traffic to your blog. Its best to be up front about these things.

Thanks

5yr
 
Shoulder seasons in NG are fall and spring. Shoulder months are usually the last or first month of the summer or winter strips, ie: H/J and V/X.
 
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