For the next couple of months, I’m long only on natural gas. It’s just a matter of trying to get a decent price so that I can step in and start buying. I’ve got no interest in shorting it, like I said, and at least until we get to something like the March or April contract, I’m going to be looking for any dip as a trading signal.

I’d be particularly interested in the $3.60 level, but that is a pretty significant drop from here. Last month, when we opened up the November contract, we gapped higher, rallied pretty significantly, pulled back to fill the gap, and then gapped higher at the open again for the day here on the 20th. We never filled that but then gapped massively when we opened up the December contract.

So, I think we’re going to continue to see that type of behavior. Now all I need to do is see a price that’s worth chasing. I don’t like chasing after a move like we’ve seen here recently, and in fact, last week we had something like a 30% gain. That’s not what prudent traders do.

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