Morning Thoughts – Oldinvestor

This is going to be short. So either gas has hit bottom from this last drop or there will be a bounce and more pain to come. I can’t say which will happen or I wouldn’t be here typing about it. Those who have the most answers generally share the least.

Sounds like CHK finally fell on their sword and have officially filed bankruptcy. Someone mentioned on Twitter that this will allow them to now cut production if they choose, but I’m not sure if that is true or not; something to keep a look out for.

Weather forecasts are showing to be more supportive of summer demand. This will help pricing of course, but it will not pull the market from an overall move lower if storage continue to climb.

Last, I’ll keep my eyes open for any news of production cuts or positive actions in LNG market. Round 2 of Wuflu is also starting to kick in and causing bars to close again. So this could have more negative impacts on the market. There is still too much pulling Natgas in both directions, and too much unknown to take more of a chance that I am currently.

My position

UNL – 80% in with an average of $7.4

This position will remain until a large move happens. Now a large move for UNL would be like $0.50. Plenty of time to react, and I will return to UNG some day. I need to slow down on natgas right now and do something less stressful, UNL will help with this tremendously. UNL greatly reduces my risk and need to manage my position so closely. Good Luck


I may keep my thoughts shorter, but will still stay focused on what I find important each morning.