We're sitting above 2.4 right now and today's inventory data came short of the consensus (30 vs. 34), which is a good news for bulls. However, I see this is a profit taking opportunity. We had a huge run from the 10 year low to where we're. The best possible scenario is we hold 2.4 level for a few days and do another leg up. Resistance becoming a support, right?
I'm looking to sell calls, but premiums are just not there. I need a few solid days, meaning open at the low of the day and close at the high of the day. Remember those thick green bars??
Another good news is Baker-Hughes gas rig count shows we're sitting at 611. I think 600 is the magic number just like that's what lots of traders are looking for. I'm wondering if tomorrow report will show below 600. However, note that with the new shale method, even at a low rig number, efficiency is quite high, or producers can quickly start producing again.
Early Summer cooling demand is another thing to be looking forward to. It seems power outage does a big role in nat gas consumption and/or a lot of companies are changing from coal to nat gas to produce electricity. Now that Winter heating demand was very disappointing, I'm hoping Summer demand is high.
Regardless, it's still a long way...
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2 comments:
what is your exit plan for NG? I got about $6k back via my options. I will probably sell out soon and exchange for some lower priced options.
Instead of commenting it, I made a new post. Pretty nice day today. Why is it that I have more patient when things are not working well whereas when it goes in my favor, I want to take small money asap.
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