Morning Update Feb 28, 2020

It’s time to buy. I would have bought this morning first thing, but I’m trying to make my purchases withing the 8am-8pm eastern time window that most people have. In Webull, I could have bought up some UNG below $13. NGJ20 went below $1.65. NGJ16 was the contract that bottomed out at $1.61. NGN16 bottomed out just below $1.95. NGN20 is currently $1.89! I wholeheartedly believe, if the coronavirus continues to take its toll on markets as a whole (which it looks very likely at this point), that Natgas pricing will reach $1.50. This is not so far away. Now the initial shock of the virus is currently upon markets this week, and that will soon pass. The true economic impacts of this virus are still unknown. What I like about natgas, it’s easy to manage. I’m talking about the physical gas. I would think natgas would be the preferred source for heat in tough economic times, because it’s easy to manage physically. Power plants…

This above article is just one that I did a quick search on google to confirm that power plants require far fewer employees to operate natgas powered electric generation vs coal powered.

I keep getting interrupted… My mind is scrambled with work this week. I’m adding to my UNG position with 25% of funds at $13 to put me at 75% in UNG. I’m going to publish this now and try to finish this post later.

I cannot seem to find time to get down what I want, nor can a focus for the VIX begging for our attention.

My line of thinking right now is to stay long UNG and be all in if prompt NG contract hits $1.5. Anything below that and the market should get a little crazy. I’ll buy UGAZ if natgas will dip below $1.5. This time period is certainly stressful, but can be exciting and can produce profits. I have to stay on course here. UNG has been good for my account. Though I’m down nearly 10% in my account, the opportunities to go long are ever increasing. Good Luck


Side note: Can’t make up my mind if I want to trade a spread that the panic will worsen or just that it won’t recover so quickly. IV may make the decision for me. I’m not so quick yet, but the opportunities are rolling in this morning.