Sunday

Natural Gas Contract Experiment

Post a Comment April 26, 2009 – 10:59 pm |   | Permalink |  Print This Post |

Natural Gas just opened for trading - still plummeting and made a low of 3199 (round number theory once again fulfilled). We are in the red (more so in our personal portfolio where we have more than 1 positions). We are fairly comfortable given how light we are. We even tried opening more positions, but received a message saying “Phone orders only” given its expiry midnight. We gave our CFD broker a ring, but was told that they would not accept further new orders, only orders to close. If our rationale is right, ie shorters>longs this would create an artificial burst UP as shorters close out to take profits. The July contract, however, is not at a significant premium. We would prefer that to be significantly higher - which would create more fear amongst shorters and encourage them to close rather than let the contract roll over. We take this as a public experiment, a small price to pay (we hope). Pray for us and stay tuned to see the final cost of this experiment.

Natural Gas May contract positions by www.theinflationist.com