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00:00SCARLET: FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK, THIS IS " BLOOMBERG MARKETS: THE CLOSE. " ROMAINE: TIME FOR CHARTING FEATURES. HERE ' S APPLE -- ABIGAIL DOOLITTLE. STOCKS ARE DOWN SHARPLY. ABIGAIL: IT IS SUCH AN INTERESTING DAY. LOTS OF DINETTE -- OF DIFFERENT DYNAMICS. THE MAIN ONE FOLKS ARE INTERESTED IN, STOCKS ARE LOWER. THE S & P 500 FUTURES, DOWN 7/10 OF 1%. ON PACE FOR THE WORST DAY IN TWO MONTHS. THIS ON TRADE RISK, THE MANUFACTURING SLUMP. WE HAVE GROWTH COMMODITIES HIGHER, SLIGHTLY. LOOK AT THE BLOOMBERG COMMODITY INDEX. WHERE WE HAVE STRENGTH HERE, THE ENERGY COMPLEX. CRUDE UP 1.4% IN HOPES THAT OPEC ARE A POTENTIAL OUT PORT CUT COULD BE GREATER THAN EXPECTED. NATURAL GAS UP 2%. SOME OF THAT HAS TO DO WITH THE SNOW WE ARE SEEING HERE IN NEW YORK. THIS COULD HAVE TO DO WITH THE FACT THAT THEY SUFFERED THE WORST NOVEMBER GOING BACK TO 2001. NOT SURPRISING AS WE LOOK AT THIS LONG-TERM CHART OF NATURAL GAS, NOT EVEN GOING BACK TO 2001. WE SEE THIS HUGE RANGE OF HIGHS AND THEN LOWS, THEN HIGHS AND LOWS. IT TELLS YOU TRADERS DON ' T HAVE A LOT OF CERTAINTY FOR THE FUNDAMENTALS. NATURAL GAS STUCK RIGHT IN THE MIDDLE OF THAT RANGE SOMEWHERE BETWEEN TWO AND THREE, NOT COUNTING THE HUGE SPIKE UP TO FIVE DOLLARS. TO TALK MORE ABOUT WHAT COULD BE AHEAD FOR NATURAL GAS, AND HOW TO TREAT IT, PETER BOORISH. THANK YOU FOR JOINING US. THAT IS QUITE A CHART. WE HAVE A NEAR-TERM VERSION OF THAT CHART. IT IS REALLY HARD TO DECIPHER IN TERMS OF THE RANGE. NOT A LOT OF CERTAINTY ON THE PART OF TRADERS. PETER: I REALLY LIKE THIS AND I LIKE THIS MARKET. SOMETIMES YOU COME ON HERE AND THERE IS A TRADE TO BE DONE AND A LOT OF TECHNICALS. IN THIS CASE, IT IS A FUNDAMENTAL MARKET. IT IS SUPPLY AND DEMAND DYNAMIC. YOU HAVE SEEN THAT, OVER TIME, WE ARE ABLE TO GET MORE SUPPLY AND THERE IS DOWNWARD PRESSURE ON PRICES. RIGHT NOW, YOU ARE LIKE HEY, IF I ' M A PERSON, I HAVE TO THINK MORE FUNDAMENTAL THAN TECHNICAL. ARE WE GOING DOWN TO THE TWO DOLLAR LEVEL, OR ARE WE GOING TO GO BACK UP TO THE MIDDLE OF THE RANGE? THAT IS A GREAT WAY TO PLAY IT. YOU HAVE MULTIPLE OPTIONS. LITERALLY TALKING OPTIONS. YOU CAN SAY, I THINK STAYING HERE, IT IS NOT DOING ANYTHING, I CAN THEN SELL. I CAN SELL PUTS AGAINST IT AND GET THAT INCOME AND SEE THAT IT WILL BE ON THE REVENUE. IF I THINK IT IS GOING TO BREAK DOWN, I CAN DO THE OPPOSITE. I CAN BUY THAT PUT, I CAN SELL THAT QUALIFY IF I WANT TO HAVE A SYNTHETIC FUTURE. IF I THINK IT IS GOING BACK AFTER THE OTHER, I CAN DO THE EXACT OPPOSITE. BY THE CALL. THIS IS REALLY IMPORTANT FOR PEOPLE WHEN THEY ARE DISCUSSING MARKETS. TO THINK, WHERE IS IT GOING TO BE? NOT JUST ON A TECHNICAL BASIS, BUT I NEED TO TAKE INTO ACCOUNT ALL THE SUPPLY AND DEMAND DYNAMICS. WE KNOW TECHNOLOGY IS GETTING BETTER. SO WE ARE PRODUCING MORE OF IT. WE KNOW THERE IS CLIMATE CHANGE. THAT PUTS DOWNWARD PRESSURE ON PRICES. AT THE SAME TIME, GIVEN THE CONCERNS OF CO2 EMISSIONS, THERE COULD BE MORE DEMAND FOR NATURAL GAS. HENCE THE TUG-OF-WAR AND THAT IS WHAT MAKES THIS MARKET ONE OF THE MOST FUN MARKETS TO TRADE. ABIGAIL: THAT IS GREAT COMMENTARY. YOU CERTAINLY HAVE SOMETHING UP HERE FOR EVERYONE. THE BALLS TO BUY THE -- EXCUSE ME, THE BEARS TO BUY THE TWO DOLLAR FEBRUARY PUTS. FOR THE BULLS, SOMETHING ABOVE $2.50. OR SELLING EACH OF THOSE. IF YOU HAD TO TAKE A DIRECTION OF STANCE, TO PUT YOU ON THE SPOT, WHICH WAY WOULD YOU BE GOING RIGHT NOW? PETER: I LEAN TOWARDS THE DOWNSIDE BECAUSE I THINK OUR TECHNOLOGY IS GETTING BETTER. WE ARE USING LEFT SOME OF IT AND ON THE DEMAND SIDE, WITH NEST AND THINGS LIKE THAT, WE ARE USING LESS OF IT. WE ARE SUPPLYING MORE, WE USE LESS, THAT DRIVES PLIGHT -- PRICES LOWER. ABIGAIL: VERY INTERESTING

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Quad Group's Borish Sees Opportunities in Natural Gas

In this edition of "Charting Futures," Quad Group Chief Strategist Peter Borish examines natural-gas prices with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

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