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  • rkmandalay rkmandalay May 16, 2012 4:55 PM Flag

    am I the only one adding to my short position?

    I shorted more, but with a lot of anxiety and frustration. Even if this is a reversal and not just a retracement, I would expect a correction to take place soon given that this rally has lasted 4 weeks and has risen over 30%. I thought that at this point, the buying would have been exhausted as NG futures are short-term overbought and would need to decline to attract sideline investors, but we just cleared the $2.60 mark on the NG futures without any regard for the heavy resistance $2.50 area. However, volume was not as strong as last week when we passed the $2.4 mark, so we'll see if $2.6 and even $2.5 will hold. I believe and am hoping that what we saw today was a capitulation short squeeze as it has been pretty painful to be a short the past 4 weeks and they probably threw in the towel today (as I was thinking about throwing in the towel myself), or at least their stop losses were triggered, which would explain why we zoomed right past the $2.5 area. But this also means that we need to consolidate the $2.5 - $2.6 area before this rally continues any further if it still has legs. This also could have been attributable to a pump and dump job by the big boys before tomorrow's inventory report. JMO...

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UNG
22.84-0.10(-0.44%)May 24 4:00 PMEDT