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Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more

 Apr 28, 2008 09:05 AM UTC
Return Risk
+2.00% MID
Tracked Blogger
Symbol Sentiment Start Return Closed
SWN Positive 04/28/08 +2.35% 05/07/08
NBR Positive 04/28/08 +6.71% 05/19/08
XTO Positive 04/28/08 +2.43% 05/07/08
APA Positive 04/28/08 +0.17% 05/07/08
STR Positive 04/28/08 -36.29% --
UPL Positive 04/28/08 +2.65% 05/07/08
APC Positive 04/28/08 +11.45% 05/07/08
CHK Positive 04/28/08 +5.16% 05/07/08
WWY Positive 04/28/08 -1.09% 05/01/08

Graphic_arrow1 Via BloggingStocks:  

Filed under: Market matters, Chesapeake Energy (CHK), Wrigley, (Wm) Jr (WWY), Anadarko Petroleum (APC), Oil, Stocks to Buy, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says it's not a strong-dollar sell -- the story here is still too good.

Why did natural gas go down last week? What was that? Inventories were down. The commodity price was up. The fuel itself is green. It is better than ethanol and it is being used to fuel an increasing numbers of cars and trucks.

The whole move down had to have been triggered by something, right? Yeah, how about the fact that the stocks were up a lot and were due for some profit-taking.

Recall that the real "reason" they went down is that the dollar "got strong," and that was supposed to trigger commodity deflation; natural gas is a commodity and is therefore going to go down. (Barron's made this very case this weekend, oblivious to the facts, but loving the theory.)

This kind of thinking is just so stupid that it shows you can get chance after chance after chance to own the fuel that can take care of the nation if we just let it. Of course, the stocks began to come back later in the week as threats of supply cut-offs of crude -- they came true this weekend -- made natural gas declines virtually impossible, despite the "sense" that it peaked. So the money has came back and I believe will continue to come back.

Continue reading Cramer on BloggingStocks: Nat gas dip was profit-taking, nothing more

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