i play the qg now and then but hurricaine season looks nonsexisten and if there's no dnmage to the platforms i can see natural gas at $3 if we hjave a wartm winter. everyone's trying to pick the bottom
Thats why I only trade with the trend. Looking at the daily chart when nat gas was near $17 and then tumbled, I wonder how many people tried to pick a bottom on that??
Take note that QG prices between October contract and November contract is a whopping $2.10 different per mmBTU. So with these contracts, it's not like you can get in on the bargain basement price of September / October contracts and hold through winter. The "winter time" contracts are taking this into account. At any rate, I say let go of the September contracts and get the October ones. This could possibly go back to low $8.00 in a week or two in my opinion.
What if you get cfds based on natgas that get rolled over and never expire ? You buy now and close in winter.
ok thanks for the answer btw on what do you base the assumption that NG should reach 8 $ within a week or two ? and hypotetically speaking if you could get winter contracts now for 6,75 would you do it with no hesitation knowing that they are priced over 11 $ now?
I mostly think it'll go to $8 because of seasonal pattern and that Natgas prices have been down for a while now plus my own indicators. I'm not sure what you mean by being able to get winter contracts for $6.75. Are you talking about the current month contract for futures? If that's the case, trading ends in a week so you can't hold til winter. If you're looking into buying the spot, I have no idea how they take into account interests, storage, etc. so I really have no input on that.
I am talking about the cfd which is a derivative of the front month NG future contract. You pay swap points while holding the contract which is about 10 % of the profit made between the price move from 6,75 to 11 $ if you keep the cfd for 90 days. All the other assumptions constant you keep 90 % of the profit. Does that sound interesting ?