You are a natural gas hedger, and you struggle with the notion that the market may move unfavorably once you lock in your hedged gas volumes. 'Hedge regret,' hedging gas volumes as the wrong price level, is a major source of angst.
Put the odds in your favor with a new, insightful natural gas market intelligence forecasting method using publicly available futures data. In this new book, Natural Gas Hedging, market veteran Brian K. Lee, MBA, PRM, CMA, CFA examines the prospect of using natural gas futures prices to assist in one's forecasting of meaningful future spot price market movement. Based on the text's detailed analysis and contrary to conventional thought, Brian clearly shows that natural gas futures prices contain valuable information relative to the prediction of future spot natural gas prices in both direction and magnitude. That is, monitoring current futures prices just once per week, offers natural gas hedgers meaningful, high probability insights as to where spot prices may evolve into the future periods.
The math involved is very simple, though the forecasting technique is quite robust. Readers may find his nonlinear market trend forecasting text, Stealth Curves: The Elegance of 'Random' Markets, as an excellent complementary market forecasting tool to this text.
Up your game, and tap the natural gas futures market to provide market insights as to potential future spot price market movements.
