I was stopped out of UNG at $9.45 within a few cents of the price hitting bottom and turning back around. It could be a mistake to not re-enter the market, but I’ll simply take my losses and hold UNL. As Ben (I believe) with First Enercast, on twitter mentioned. The market is still oversupplied and prices are well above last year’s pricing. Anyone long at this point is anticipating/hoping for that surplus of gas to shrink. Many times it simply takes longer than we want it to.
Fundamentally, prices should be well supported. The lack of production is still the same; it is what will keep my long sided. I had considered a UNG short, but there isn’t any contango to capitalize on such a position right now. I will wait to short UNG. If prices go up from here, I’ll take another look, but for now I’m staying out of UNG and staying in UNL.
I’ve taken another loss of $21.15; this makes for a total loss of roughly $35 on my $2500 account.
The most recent weather forecast shows more cold coming, so the storage surplus is expected to shrink further. I will continue to hold my 100 shares of UNL. I don’t have much else to say and I have a busy day job ahead. Good luck. I hope the weekend is a good one.