RE:Nat Gas Flavour Mayor says that there is a short squeeze on today .
I see that there is 93600 open interest, and wonder if that is kind of high at this late in the Jan contract.
That is quite a steep downtrend channel for last two months and it is still showing reluctance of traders to get over the upper band on both Jan and Feb.
It seems like Jan went up to meet where Feb was trading, which of course drags up the Feb and March.
It is still warmer or average temp forcasts on the maps even out 90 days so I will still say that is why the downtrend channel will hold and continue.
last December was a big drop in NG and it continued into spring. There is no change in the glut of NG in the south east , imho the rally could be traders rolling over to Feb today taking advantage of Mayors short squeeze earlier and avoiding the Christmas holidays when there may be less players to trade with and the forecast could change either warmer than normal or more average.
The spring storage glut should pronounce itself on the next EIA report , since it was unusually warm everywhere on the continental USA and Southern Ontario map last week,
Could be a bull trap today.