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The natural gas markets rose during the session on Tuesday as we managed to break above the three dollars level cleanly a couple days ago. We still do however have a couple of resistance areas above that would keep us from buying this market. Namely, the $3.20 level is an area that this market will have to fight in order to get above.
On top of that, the long-term trend is most certainly down in the fundamentals don't support natural gas gaining over the long run. Because of this, we actually preferred be short this market but have noticed that recently the buyers have gain the upper hand. With this in mind, we think that eventually there will be an opportunity to sell natural gas, but in the meantime we are simply going to sit still as there are so many areas where choppiness could come back into the fray. If we managed to get above the 3.50 level however, we would have to admit that perhaps the trend is changing.