RE: RE: RE: RE: Bought HNDLast year NG got crushed due to concerns that storage capacity would be exceeded, slow economy, warm fall temperatures etc. This resulted in a no brainer HNU situation. With NG sitting at $4.00 right now, plenty of storage capacity, contango that encourages producers to stick it into storage and sell a futures contract and make 3% per month all make me think that the upside for U is limited unless demand starts to outstrip supply (unlikley given the economic situation in the USA) or we have a really cold winter in the areas that use NG for heating. This might happen but there will be many trading opportunities before that day arrives.
So from my perspective a break below $4 on the October contract indicates a short term bear move and an opportunity to profit with HND.
We will see what tomorrow morning brings.
GLTA