It's Only Natural

When it feels like the world is on your shoulders
And all of the madmen has got you going crazy
It's time to get out, step out into the street
Where all of the action is right there at your feet
--Debarge

I've felt a bit naked after taking off all commodity positions over the past month. Of course, their continued ramp higher prolly has something to do with that.

To regain some commodity exposure, I've taken a starter position in natural gas. Being long natty gas has been a house of pain over the past yr or so. Prices have been crushed, as near term supply is swamping demand as new liquid-based sources have been initiated.


But gas is currently selling under $4 per million BTUs (multi-yr lows), and I'm not sure I've heard more bearish tones to this material since I began following it a few yrs back. Technically speaking, it appears that the nasty downtrend is giving way to some basing action.

As such, I like the risk reward here, and hope to use price to my advantage to build a more significant position.

position in natural gas