Morning Update – May 5, 2020

I’m invoking my ability to sell at 6:50est time and reducing half of my UNG holdings. My order at $13.95 did not fill yesterday because I did not placing it for after hours. I’m super excited. Though this jump is based on a surprise, I’ll take it.

Reducing UNG to roughly 18% holdings at $14.57

Pipeline explosion early evening last night.

https://www.wymt.com/content/news/Crews-respond-to-gas-pipeline-explosion-in-Fleming-County–570194971.html

This is not entirely bullish because it can cause natgas not to get to demand areas to be used. But it could also be bullish because now extra efforts have to be taken to get gas to those same demand areas and more gas will be used at compressor stations (working the pipelines harder that are rerouting the gas). As long as the gas can be delivered another route, a little extra will be used, or… possibly production will be stalled further in the mean time. I know it will add mental anguish to already hurting producers, but this incident may not actually hold up production any.

A quick google search for tetco shows images of main pipelines running to or from the Northeastern US.

a quick search for ‘eia pipeline map’ will bring up an infrastructure map by the EIA. The article says Felmming County, near Hillsboro

Energy Mapping System by EIA.gov

click on the layers/legend, remove all check boxes except for Natural Gas Pipeline (shown below)

US Energy Mapping System by EIA.gov showing natgas pipeline

I’ve circled the area to zoom into to see where the pipeline is. It is the one pipeline running from southwest to northeast, kinda on its own. It can be clicked on to show what little info they have on this pipeline.

Tetco pipeline highlighted

Looks like that’s about all I have time for right now. I have a call to go to. I can see there are quite a few other pipelines in this same area as the Tetco line, but each have fairly specific directive. Though it may be challenging, most of the gas being transported by Tetco may be able to still get moved by another pipeline temporarily.

My positions

UNG – roughly 18% in with an average of $13.08 – I reduced this morning by half of my position at $14.57

USL – 13% of funds invested with an average of $11.41 – this appears to be showing strength. Some sources with big names (Morgan Stanley) saying the bottom for oil is in. Not that they are all knowing, but it’s a good reason to stay long. I’d be interested in adding, but I’m too spread thin. I’ll wait this one out.

Placing a stop on UNG at $13.95 now on my current entire holdings. I want to ride this higher, but if there is a pull back, I want out in case there is somehow a fall closer to $13 again. Good luck

Oldinvestor

I had a moment to look at headlines… Well no shit Batman. Stay away from people out there.