To suggest a drop in WTI is the reason for CHK to dive is a mistake. You should listen to some intelligent experienced traders, and try to get a grip on what really moves the financial world, especially oil and gas.
Oil and gas markets and financial institutions are the most manipulated stocks all over the world and thus the easiest to move. Folks should not try to simplify old-time market manipulation.
Sure CHK trades with oil and gas prices just like the entire sector. Most of this trading is now done by computers working on algorithms designed and written by physicists, psychiatrists, and a thousand other experts employed by world banks that are heavily involved in Market Making and stock market manipulation.
These cats are EXPERTS. They have large staffs of top financial scientists that search for ways to move stock prices in their favor and to create $100's of billions of market churn. Make no mistake, these manipulators are big banks that have taken over as MARKET MAKERS and they all fake the bid and ask prices to lead trading dummies around like blind fools. One of the biggest and best, Barclays Bank of England, no doubt a Market Maker of Chesapeake and maybe a Market Maker of 50% of the oil and gas sector, is the worst crook of all.
This current manipulation works like this: This group of banker thieves decided they can use the british bullcrap to create more fear in the market. They work out their plan and position themselves to take advantage. They have friends in high places that would sell their own mother into prostitution for a pound or two. They own or have control over a lot of the media. They are like the old Rothschild's Group only much smarter with huge computers.
They started this time by creating fear that the Bank of England might go broke if the British government did not divert a few Billion pounds to save it. They hammered away with the media that the situation in the UK may bring down the EU, which "MIGHT" cause the whole world to slip into deep depression like what happened in 1929.
Then on Monday morning in Europe, while the US market was closed for a holiday, they started the plan by shorting natgas and causing it to dive off a cliff--straight down within seconds. If you create a chart of what happen to natgas on the morning of July 4th, you can see the sudden drop from $2.99 to $2.87/mmBtu. This was easy because the US market (the real market for UNG) was CLOSED! This move was planned a week in advance.
Then they shorted UK and EU banks and created fear of a market crash was underway. Next they moved over to oil prices and started selling crude short. This is like pushing a huge round boulder down a mountain. All you have to do is start it rolling--it will crash down on its own.
Then the Market Making Banks started buying gold and silver and moving money into safe havens to create the illusion of a crash. This is easy for them because they have no trading expense!
It worked! They scared the hell out of all the day traders worldwide who immediately started moving out of stocks into cash and then gold. The normal bulls and bears were shocked and started following the stupid short sellers into cash, gold, and silver.
In other words, the big Market Makers--the banks that make every electronic trade and have total control over the bid and ask prices--created FEAR FEAR FEAR that the financial world is going to crumble all because the stupid brits decided to leave the EU.
There is no way that all the sweet crudes in the world should crash simply because Brent Crude might suffer due to lack of British Pounds going into North Sea production. If Britain fails, Brent Crude should drop and US produced WTI should move UP! There is also absolutely no reason US NatGas futures should crash because Britain leaves the UK.
And there is no reason to think that natgas demand and Chesapeake Energy will instantly collapse because of a weak recession! Natgas trades on supply and weather demand. Nothing else except STUPID FEAR AND IGNORANCE can move natgas prices!
You want to know when it will all turn around? Watch Bloomberg's TV for the background color to slowly fade from red to blue or green. Watch for red ties and red dresses to disapear from all the experts and talking heads.
Or you can just listen to me and I'll keep you updated! Sure, I act a little funny at times, but did you ever see a level-headed genius? All of us really smart people are a bit wacky. I think that's why you like me so much! Smile grilfreind!
