Will start with comments last night. The gap higher on last nights open, which was filled, turned out to be a "gap and crap" short term selling signal. Looks like tjc was a couple of days early............especially if the extended maps take out the massive heat ridge.
By metmike - June 17, 2018, 11:06 p.m.
Natural gas gapped higher on the open(the lows early tonight were higher than the highs from Friday) but barely filled that gap 3 hours later, with the drop to the lows this evening..........$3.033.
Mixed temperatures for the natural gas.
Seems a bit cooler later this week into early next week, especially in the Midwest/Plains but then the GFS products have a much hotter solution late in week 2.
By tjc - June 18, 2018, 9:06 a.m.
NG opened much higher Sunday evening, into new ground, but has since consistently eroded.
Significant Reversal forming.
(Perhaps I am merely 'early' rather than wrong---beauty of an option giving you time)
By WxFollower - June 18, 2018, 9:58 a.m.
Similar to what Mike said, the forecasts I’ve seen vs Fri are warmer in week 2 but are cooler in week one. Though they are pretty flat forecasts for the 2 week period overall vs Fri, the higher reliability of week 1 appears to be taking precedence over the much lower reliability of week 2.
NG usually trades the entire 2 weeks in some way, shape, or form. If the overall two week forecast looks pretty flat but week one looks warmer (cooler) while week 2 looks cooler (warmer), it sometimes puts more emphasis on the much more reliable week 1, sometimes puts more emphasis on the much less reliable week 2 especially if the week 2 forecast change is larger, and sometimes puts about equal emphasis on the 2 weeks. A lot of this depends on what’s dialed in beforehand, which way prices had recently moved, and seasonal as well as nonwx factors like recent storage trends and perceived supply/nonwx related demand balance actual and forecasted changes.
Modest Easing of Near-Term Heat Sends July Natural Gas Lower Ahead of Open
8:57 AM
July natural gas prices were about 1.5 cents lower Monday ahead of the open, trading at $3.009 settle amid a modest pullback in near-term weather forecasts.
Here are some of the cooler temp anomalies, especially the next 5 days. Intense heat, near record heat pushed natural gas above resistance and above $3 finally but less intense heat has us back below $3.
Temp anomolies the next 5 days
For highs below
FOR LOWS BELOW
Temp anomolies days 3-7 FOR HIGHS BELOW
FOR LOWS BELOW
Looking at the price of natural gas at longer and longer time frames gives one a different(wider) perspective...........now if you are a day trader.........who cares (-:
We could just be testing the top of the break out here. Seasonals turn weaker from now thru July. Could go hard either way, if the weather turns decisively. ...the last GFS was cooler in week 2. Additional runs like that and the highs are in.
Natural gas 3 month
Natural gas 1 year below
Natural gas 5 years below
Natural gas 10 years below |
Closing comments from Natural Gas Intelligence:
July Natural Gas Plunges Below $3 as Latest Weather Forecasts Sustain Cooler Trends
5:21 PM
July natural gas prices retreated Monday as returning production and slightly cooler weather outlooks for the end of June and early July weighed heavily on the market. Read More