Natural Gas is such a great commodity trade– goes up $.60+ on one day only to go down $.50+ the next — that is major league chop. Mentioned in the late posted Daily that expect a retracement and consolidation — did not expect the retracement to include nearly all the previous days gains. Volume was huge on Wednesday and just shy of that level yesterday. Open interest is more confusing as it gained nearly 30% on the rally day but only lost under 10% yesterday. I thought a significant amount of the gains on Wednesday was short covering which would show up a a decline in Open interest– not so. Yesterday’s decline can easily be defined as profit taking. Now what– there should be some consolidation in here at some point — may want to tread lightly and short term today. Continue to think that the comments in the Weekly section are spot on about the market in general — but clearly, the range defined in the Weekly, may have to be adjusted due to this volatility.
