Winter of Discontent

With layoffs, bankruptcies and production shut-downs, the energy sector may be setting itself up for higher oil and gas prices; especially this coming winter.

Fotosearch_k1394195There’s potential for brutally cold winter temperatures from decreased sun-spot activity (called solar minimum) while at the same time producer output is contracting or disappearing altogether

In a paradoxical price action set-up, UNG, the commodity tracking ETF, may have just signaled a long term bottom.

Discussion and technical analysis of UNG is here.

As of this post and with natural gas prices declining for so long, looks like today’s action is a short squeeze.

Now is the winter of our discontent

Richard III


Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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