Message-ID: <16110219.1075857603731.JavaMail.evans@thyme> Date: Mon, 14 May 2001 00:51:00 -0700 (PDT) From: steve.lafontaine@bankofamerica.com To: john.arnold@enron.com Subject: RE: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Lafontaine, Steve" X-To: John.Arnold@enron.com X-cc: X-bcc: X-Folder: \John_Arnold_Jun2001\Notes Folders\All documents X-Origin: Arnold-J X-FileName: Jarnold.nsf i think thats rite -think curve flattens somewhat.back end the overvalued part for now. i think we more consolidate sideways choppy for a few sessions but if the present rate of injections continue the end users/utilties will have to stop buying cuz of real phys limitations to take the gas into storage. funds short but only 6% of open int and have covered later part of last week. think vol comes in again too.i think it sale 4.50 scale up-talked to some others to o thinking it cant go below 4.00 so i actually think more the suprise in the short term for a break of 4.00!! so who knows/cud work the other way. agree-disappointed at lack of producer selling-we had one deal come thur but its been worked for months so not price relevant. when are you in town next? -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Sunday, May 13, 2001 6:34 PM To: LaFontaine, Steve Subject: Re: most bullish thing at this point is moving closer to everyone's psychological $4 price target and that everybody and their dog is still short. next sellers need to be from producer community. saw a little this week with williams hedging the barrett transaction but wouldnt say thats indicative of the rest of the e&p community. short covering rallies will get more common here. velocity of move down has slowed significantly for good (except maybe in bid week). my concern is if we go to $4 and people want to cover some shorts, who's selling it to them? might feel a lot like it did when we were trying to break $5.