Tuesday saw the natural gas markets fall yet again. This market is now entering a freefall, and although there will certainly be some kind of bounce, the ferocity of the downtrend simply cannot be risked in some kind of bottom fishing. However, you can be assured that there will be someone out there willing to buy this contract - but it won't be us. In fact, we are looking for those bounces to sell as this market is completely broken. Now that we are under the $2.50 mark, a bounce really is overdue. However, we cannot simply buy based upon what the market should do, and as a result we will simply sell every time this market rallies 10 - 15 cents.
Natural Gas Forecast January 18, 2012, Technical Analysis