Natural Gas Is Strong Because of the Weather Trade -- Buy at Your Own Risk

Dan Dicker, senior energy contributor at thestreet.com talks with Stephanie Link, co-portfolio manager for Action Alerts Plus, about the strange relative strength of natural gas. Despite very bearish fundamentals, natural gas has managed to be the one commodities that hasn’t slipped much recently, remaining close to or above $4/mcf. Dicker believes that it is only the weather trade – or the bet that the winter of 2014 will be a repeat of 2013 – that is holding natural gas up. While he does not recommend this trade, he advises those willing to roll the dice on natural gas prices to do it directly in the futures markets and buy January or March 2015 contracts.