Natural gas markets rose again on Wednesday as traders continue to collect profits from a one way trade over the past year. The market is certainly in a downtrend, and as long as we stay below the $4 mark, we see this as a “sell only” market. The $3.30 level saw that gap form a while back, and we think this area should continue to have an effect on this market, and we are looking for shorting opportunities in that neighborhood.
The market simply cannot be bought at this point in time, and we think that the year coming up is going to be more of the same. We like selling on rallies, and on new lows. There isn’t a scenario that we can imagine currently that has us buying natural gas as the supply far outweighs demand.