Thursday, April 26, 2012

Natural Gas: Advice to the Shorts

We are having our second largest snapback reaction in the futures since the decline began in the $2.80 area.
After getting down to $1.902 for the front-month, gas popped yesterday and is up a bit in early electronic trade, 2.106 2.12 last up another 3.8 5.2 cents. If the gain holds it will be the third consecutive day of higher closes.
This feels like a better place to sell than to buy.
As we wait for the EIA's storage report here's some history:

From Vintagraph:

Designed by the British Ministry of Information during WWII, the Keep Calm and Carry On poster 
was used to calm the nerves of the public and help boost morale, circa 1939....