COM - U.S. Natural Gas Market: Storage Surplus On The Horizon

• This Thursday, I expect the EIA to report 3,565 bcf of working gas in storage for the week ending Nov. 26.
• I anticipate seeing a draw of 58 bcf, 27 bcf larger vs. the five-year average for this time of the year.
• Fundamentally, there is no explicit shortage of natural gas in the U.S.
• I think a lot of bulls have capitulated near $4.450 so the chances for a technical (and, possibly, strong) rebound have increased.
• I closed my short position in Jan. contract (opened: $5.504; closed: $4.843). I then tried to go long from $4.500 but a trailing "take-profit" was hit. I am currently on the sidelines.

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