Morning Thoughts – Oldinvestor

I’ve shorted KOLD and sold a put that expires in February. I also shorted 1 share of LABU because I could and because it seemed like a good deal. Turns out I was right for a day anyway.

Positions as of premarket 10/15/20 except KOLD is previous close

It’s the same story with Natgas. Production is coming back a little, I’m sure most of this is GOM (gulf of Mexico) coming back online. LNG is still strong, but the global market for natgas is still heavily supplied and near full on storage. I did retweet a headline I saw from Javier Blas, mentioning double heating. If half of an office is working from home, the heat will get kept on in homes and in offices this winter. This will not be enough to change markets, but could help by a few Bcf/d across the world. The Northern Hemisphere still needs a cold winter to use up some extra storage globally.

Either way, I’m staying long. Perma-bull until March anyway, and probably then as well. I’ll remain long UNL. I guess it’s time to just start buying UNG. The only thing that is concerning is Henry Hub cash prices. HH cash is staying close to $2. This could cause problems for November contract. By Monday, UNG will have fully rolled into December contract. FOMO (fear of missing out). I feel like if I don’t get in UNG now, I’m going to miss out on the next big move. I’m in UNL, and need to just stay in that until next week. I’ve been so patient, and it’s been boring and I haven’t made a dime, but I’ve held on… So I’ll keep holding for a few more days. Then back to chaos. It’s EIA day today. Good Luck