Video: Beating the models with MeteorologyIt's a bit long, but my first video. I am explaining the upcoming February pattern. How and what to look for in the winter with long range synoptic weather models. I am expecting the upcoming week to be warmer than normal, but do believe that cold returns for an overall colder February. This is going to be influencing storage coming out of the demand season. This I believe will keep NG above the $3 mark until we see what happens with production after the winter draw down and LNG terminals bringing new trains on. More LNG coming online is iffy at best, due to the constant delays in completion. But hopefully with the new Trump administration there will not be any hold up on the FERC permits being issued. The delays are just good old fashion construction delays.
I expect a lower open and a drop before the contract rolls over Tuesday. Currently there is a wide margin between the Feb and March contract price that needs to be closed. The Feb contract dropping is one half of the equation, the other is the March contract gaining. So, I am looking to short the Feb contract until it rolls over and enter the lower March to the end of the month. Good old fashion, buy low sell high. This is not investing advice, just what my personal plan is. I continue to expect large 20-30 cent daily moves. So use your charting skills to set you resistance/support zones. I will continue to use the 20D SMA as resistance. It has stayed true for two full contracts. Until I see different in the long range weather, I expect the price to stay above this level. Although, there will be some readjustment after the contract rolls over with a lower drop and a gap down. Good luck!
Keep it Burning!!!