Thursday, December 29

Today was another crushing day for the energy sector. Weather reports haven’t changed, but overall bearish economic news (rising unemployment) has set energy back as a whole. During today’s session forward month Natural Gas futures fell 2.67%, a 6 month record loss for a single trading day. Our coal position was badly battered, but we highly recommend holding positions in energy. January is still expected to be much colder than previously estimated, with no warming trends at all.

The last few days of loss in Energy have had us looking for another market to diversify into – at least one. Our losses this week have made it clear that we need stronger diversification guidelines in general. We’ve chosen a few markets that have performed comparably well and traditionally have very low correlation with each other – Real Estate, IT manufacturing, and our Energy sector. As we research candidates in each of these sectors we’ll post detailed analysis of each, and our recommendation and chosen position (if any). These reports won’t appear as daily updates, they’ll be separate posts for each candidate, though they will appear on the general blog page as usual.

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