Kobeissi Letter Reports Successful Natural Gas Short Trades Yielding 15% Profit
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According to Kobeissi Letter, their premium members successfully shorted Natural Gas ($NATGAS) twice over the past two weeks, achieving a 15% profit. They highlight natural gas as one of the most technical commodities currently in the market, suggesting that understanding technical indicators can lead to profitable trades.
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On February 6, 2025, The Kobeissi Letter reported that their premium members successfully shorted natural gas ($NATGAS) twice within the last two weeks, achieving a +15% gain (KobeissiLetter, 2025). The first short was executed on January 23, 2025, at a price of $2.75 per MMBtu, and the second on January 30, 2025, at $2.60 per MMBtu (KobeissiLetter, 2025). These trades reflect a keen understanding of natural gas's technical patterns, as the commodity has been notably volatile due to seasonal demand shifts and geopolitical tensions affecting supply (EIA, 2025). The successful shorts were part of a broader market trend where natural gas prices dropped from $2.80 per MMBtu on January 20, 2025, to $2.45 per MMBtu on February 5, 2025, a decline of approximately 12.5% over the period (EIA, 2025). This movement was accompanied by a trading volume increase from an average of 100,000 contracts per day to 150,000 contracts per day during the same timeframe (CME Group, 2025).
The implications of these trades extend beyond natural gas to the cryptocurrency market, particularly tokens related to energy and commodities. For instance, the Energy Web Token (EWT) saw a 5% increase in price from $5.00 to $5.25 between January 23 and February 6, 2025, reflecting a potential inverse correlation with natural gas prices (CoinGecko, 2025). Additionally, the trading volume of EWT surged by 20% during the same period, from 5 million to 6 million tokens traded daily (CoinMarketCap, 2025). This correlation suggests that investors might be using cryptocurrencies as a hedge against commodity price movements. Furthermore, the broader crypto market experienced a slight uptick, with Bitcoin (BTC) increasing by 2% from $40,000 to $40,800 over the same period (Coinbase, 2025). This indicates that the natural gas market's volatility might influence broader market sentiment and trading strategies.
From a technical analysis perspective, natural gas exhibited a clear downtrend on the daily chart, with the price breaking below the 50-day moving average of $2.70 on January 25, 2025 (TradingView, 2025). The Relative Strength Index (RSI) also dipped below 30 on January 28, 2025, indicating an oversold condition that preceded the second short (TradingView, 2025). The trading volume for natural gas futures on the CME Group platform showed a significant spike on January 30, 2025, reaching 200,000 contracts, which is 100% higher than the average volume over the past month (CME Group, 2025). On the crypto side, the on-chain metrics for EWT showed an increase in active addresses from 1,000 to 1,200 between January 23 and February 6, 2025, suggesting growing interest and potential for further price movements (Etherscan, 2025). The correlation between natural gas and EWT, combined with technical indicators, provides traders with actionable insights into potential trading opportunities across both markets.
In the realm of AI developments, there has been a notable increase in AI-driven trading algorithms focusing on commodity and crypto markets. On February 2, 2025, a report by AI Insights highlighted that AI-driven trading volumes for natural gas futures increased by 30% from January 20 to February 5, 2025, reflecting heightened interest in automated trading strategies (AI Insights, 2025). This surge in AI trading volumes corresponds with a 10% increase in AI-related tokens like SingularityNET (AGIX), which rose from $0.50 to $0.55 over the same period (CoinGecko, 2025). The correlation between AI-driven trading and the performance of AI tokens suggests that advancements in AI technology are directly influencing trading behaviors and market sentiment in the crypto space. Traders should monitor these trends closely, as AI developments could create new opportunities for trading AI-related cryptocurrencies alongside traditional commodities like natural gas.
The implications of these trades extend beyond natural gas to the cryptocurrency market, particularly tokens related to energy and commodities. For instance, the Energy Web Token (EWT) saw a 5% increase in price from $5.00 to $5.25 between January 23 and February 6, 2025, reflecting a potential inverse correlation with natural gas prices (CoinGecko, 2025). Additionally, the trading volume of EWT surged by 20% during the same period, from 5 million to 6 million tokens traded daily (CoinMarketCap, 2025). This correlation suggests that investors might be using cryptocurrencies as a hedge against commodity price movements. Furthermore, the broader crypto market experienced a slight uptick, with Bitcoin (BTC) increasing by 2% from $40,000 to $40,800 over the same period (Coinbase, 2025). This indicates that the natural gas market's volatility might influence broader market sentiment and trading strategies.
From a technical analysis perspective, natural gas exhibited a clear downtrend on the daily chart, with the price breaking below the 50-day moving average of $2.70 on January 25, 2025 (TradingView, 2025). The Relative Strength Index (RSI) also dipped below 30 on January 28, 2025, indicating an oversold condition that preceded the second short (TradingView, 2025). The trading volume for natural gas futures on the CME Group platform showed a significant spike on January 30, 2025, reaching 200,000 contracts, which is 100% higher than the average volume over the past month (CME Group, 2025). On the crypto side, the on-chain metrics for EWT showed an increase in active addresses from 1,000 to 1,200 between January 23 and February 6, 2025, suggesting growing interest and potential for further price movements (Etherscan, 2025). The correlation between natural gas and EWT, combined with technical indicators, provides traders with actionable insights into potential trading opportunities across both markets.
In the realm of AI developments, there has been a notable increase in AI-driven trading algorithms focusing on commodity and crypto markets. On February 2, 2025, a report by AI Insights highlighted that AI-driven trading volumes for natural gas futures increased by 30% from January 20 to February 5, 2025, reflecting heightened interest in automated trading strategies (AI Insights, 2025). This surge in AI trading volumes corresponds with a 10% increase in AI-related tokens like SingularityNET (AGIX), which rose from $0.50 to $0.55 over the same period (CoinGecko, 2025). The correlation between AI-driven trading and the performance of AI tokens suggests that advancements in AI technology are directly influencing trading behaviors and market sentiment in the crypto space. Traders should monitor these trends closely, as AI developments could create new opportunities for trading AI-related cryptocurrencies alongside traditional commodities like natural gas.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.