Thought maturity in the market had arrived — little did I know that the teenager was in the wings waiting to stretch its legs taking the trading range over $.50 and blowing through the $6.00 level. Some of you have contacted me about selling some of the hedges we set into position last summer and spring— I can not recommend selling anything into this run until the market sends some signals that the silliness is going to end. Reasons for that center around the potential of Henry Hub running up to $8-$10 before this run is over. There will be corrections taking price down for a day or two, but the over-riding trend is (has been) strength. So unless you want to actively manage (sell and buy back) your hedge positions– stay back and work on other more pressing issues. Did I mention– winter forecasts have not yet been priced into the action.
Major Support:$5.416, $5.341, $5.17, $4.88, $4.61, $4.537,$4.375, $4.211, $4.156, $3.92, $3.821, $3.722, Minor Support: $4.728-$4.70, $4.66 Major Resistance:$6.24-$6.493
