First, here is an update of my positions and account balance. My account balance is suffering along side the weakness in natgas pricing.
I believe there has been strength in production, and this is not going away as oil is back to driving associated gas output higher. Already! It is apparent that even a slight increase in production is not welcome. Prices were below $2 a year ago, so the deficit to the 5 year average is priced in. It’s been a year… geez
UNL will be below $8 today, I am a buyer.
Instead of buying UNL, I am exiting UNG. I am shifting away from shorting UNG, and more toward BOIL. The hard to borrow interest is far higher with BOIL than UNG, but so is the decay.
Since UNG has a tight Bid/Ask Spread, I exited now, at $9.47/share.
Now I’ve exited UNG, I will hold here for a bit longer. If the natgas prices continue to tumble, I may exit BOIL. The original plan was to hold the short position longer term, but some opportunities are too good to pass on. Instead of increasing UNL, I will reduce BOIL. It will be a while yet. As for today, no more moves. I’ll wait now. Good luck