The UNG Trade / EIA Natural Gas Report

As noted the last 3-4 weeks, the day before the EIA Natural Gas Inventories, we have seen distribution in UNG the day before and typically a bad response from the ETF upon the release on the inventories, usually at 10:30 Wednesday morning, but today because of the President's day holiday.

The chart...


As pointed out, here's the typical distribution (small) the day before the report

Yesterday's distribution as usual over the last month and the gap that is typically filled. We had a nice options trade in UNG, a call, I believe we may have a chance for another. Lets let the EIA report play out at 10:30 and see if there's an opportunity to fade the weakness we have seen over the last month, longer term I'm very bullish UNG and even if it's just buying the dip to put together a position, this may be useful. We will wait for the signals to confirm after the report.