Demand is still weak, supply is still holding strong, though not increasing. Weather is… weather and it’s cold, but no blistering cold in the forecast. I’m left with “the gap”. This ever elusive technical indication that sometimes spells a turn. I read about gaps just yesterday afternoon. The main warning I got, was not to go long until an exhaustive gap fills. Yet here I sit with 18% invested in UNG now.
My only saving grace here is the market is stuck in a consolidation pattern. I can’t get past the part about record short positioning, and that is when I want to buy more UNG or even UGAZ. I will however be keeping stops in place on both UNG at $16.75 today, and I have stops on my QGF20 positions at $2.19 that will remain.
That’s about all I know today, holding on to the edge for now. I’ve got a busy day at work. If Jan pricing makes it back to $2.3, I’ll feel like we have some breathing room, and will continue to hold my long position.