The first real increase in power generator demand for this current summer is expected this week as near record high temperatures envelope the western U.S.
This type of rally is to be expected during the summer cooling season, a sideways trending and highly volatile market.
What would not be expected is to see a continued run higher longer term without some type of end of summer price break.
As the chart shows, the secondary price low which should occur later in the year tends to be the low price point for the year. However, given the market reached an 18-year low in early-March at the 1.611 level, it is doubtful as to whether a new low will occur later this year.
Once near term strength ends, a drop back toward recent lows is expected. Don't get too caught up in the near term hype.
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