We are most certainly in a downtrend, that should be news to no one. Because of this, I believe that the market will probably continue to offer selling opportunities on short-term rallies, none of this should be anything new. However, as we have approached the $2.00 level, it’s obvious that there is a certain amount of hesitancy to break down through there. This makes a lot of sense; it is an extraordinarily large round number and a lot of people will continue to pay quite a bit of attention to it.
NATGAS Video 08.08.19
It appears that the Europeans and the Asians tried to bid the market higher, but quite frankly they don’t have the firepower that the Americans do in this market. It is because of that fact we need to really pay attention to the fundamentals in the United States more than anything else. They are horrifically bearish, because quite frankly the United States is so oversupplied with natural gas, not only in storage but in the ground, that there is almost no way to have a longer-term uptrend as long as supply and demand are part of the discovery process. This isn’t to say that we can’t rally, we certainly can and probably will during the winter in America. However, longer-term we will continue to make much more money from the short side than the long. Currently, I continue to fade short-term rallies at every $0.05 level. This is a short-term traders market.