I will be honest with you when I started to write the Weekly report I had just enjoying the Denver Broncos efforts in loosing the AFC championship game (no I did not go rather my daughter and son -in – law wanted to witness the game), so I sat and started to this only to witness a moment in trading I had not in years (Hurricane Katrina comes to immediate mind) so I broke off continuing and decided to wait to publish today (Tuesday) after the fireworks were done and trading resumed – if it did. You now know why I try not to trade the expiration of a contract and mentioned last week that, I would not be trading the Feb contract and sticking with the March prompt. The following was what I was going to start the Weekly with before the abortion.
On last Thursday, after surging $2.293 from last week’s closing price (including a gap between $3.230 – $3.380), February traded through the December high. Prompt gas trading through the calendar December high during January is not all that unusual, prompt February has done that in three of the last four years. What is unusual is doing that after trading to and through the December low (technically considered an outside month). Since organized trading of natural gas began during the spring of 1990 that has happened exactly ONCE before…in January ’24 and the reversal was in the opposite direction.
