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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,120 since Dec 2013
Thanks Given: 4,488
Thanks Received: 10,348
Three weeks into April and 3 draw downs in inventories. I believe this weeks draw (3rd week of April) was the first time that we've ever had a draw this late and that this is the first time we've cumulatively drawn stocks over the first 3 weeks. Despite that prices continue to be in the middle to lower end of the last 4 month range.
I've been watching it daily, the trading has seemed slightly maniacal to the downside. I don't think now is the time for a continued sell off though, and there has been a decent number of bouncing rallies. The trend is down though but I hope it levels off.
I am playing SWN heavy instead, I have sold puts at $4 and $5, and will play with SWN with puts in the $4-6 area and then covered calls if assigned. I have good basis with SWN and am in doubt prices will go lower from here.
What I don't like is how oil is so high but oil stocks not so much. If oil sells off will these tumble further or just take it softly? If both oil and nat gas tumble it would get bloody. I doubt this scenario just because both have been down for so long to begin with, so take it with a grain of salt, but prices will recover at some point...
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,120 since Dec 2013
Thanks Given: 4,488
Thanks Received: 10,348
Draw of 18. I think I'm correct this week in saying it's the largest draw for this week of the year and only the second time we have drawn stocks this late in the year. Still a cumulative withdrawal so far this month, where as traditionally we would have added 100-200 BCF of gas into storage already.