The natural gas markets have been immensely bearish over the last couple of years. The most recent action has seen acceleration to the downside, and Monday only exacerbated this. The gap down and the lack of pullback are extremely bearish for this market, and the gap could even find itself as massive resistance going forward.
With this in mind, we are willing to continue selling this market until we recapture the $4 mark, something that looks highly unlikely at this point. The market is a “sell only” one, and with that being said, we love selling rallies, and with this newest gap, we could even sell here. There is absolutely no way we could be convinced to buy at this point.