Morning Thoughts – Oldinvestor

Damn you SLB. I’m in great shape other than them. Apparently SLB was not the bargain yet that I thought they were. Nor has EOG been. Everything else has been ok to good. I’m happy overall, just not with happy with 1 position dragging my example account 10% lower. The fundamental picture is still the same. Prices are under pressure from storage.

South Central storage non-salt now at 93% of max capacity; East is building fast as well at 89%. LNG has seemingly stabilized, but power burn is way down with cooler than normal temperatures in the south right now. Weak power burn demand is enough to offset relatively strong LNG demand. Storage will not reach capacity, but it’s going to come too damn close to picture November contract ever having a chance. I dumped my UNG short at 11.02 of all prices yesterday. That was exciting for 30 seconds to have exited my position at the low of the day, but right now I’m kinda thinking I may have been better to hold it. I could always re-enter, but I don’t want to. I want to wait for storage to get to its worst and buy up all the UNL I can get. Maybe even dump SLB at a loss, I’ve got plenty of time to decide this. It will be another 4/5 weeks this scenario is going to drag on… barf.

Positions and P/L as of premarket 10/2/20

As for now I’m holding UNL and SLB covered call. I’m going to hold where I am. SLB may drag on lower, and it will definitely be out of range soon for rolling any lower… Much lower and I’ll have to let go of SLB at a sizable loss, for a chance at re-entry or write it off. As for today, I’ll be holding where I’m at. I hope the weekend is kind to you.