Elegance is Nice But Not Required

There are, indeed, plenty of other markets and macro headlines circling about these days for too many market players to concern themselves with the price action in natural gas. 

However, with the 2016 Hurricane Season starting today, and wonky on-site reporters on the weather networks playfully wagering each other which Gulf Coast or eastern seaboard city will get pummeled by another Katrina, it is worth keeping tabs on the long-time lagging natty. 

Specifically, UNG (ETF for natural gas) surprisingly followed-through higher on its gains from yesterday which, in and of itself, is a bit of a break from the usual immediate giveback. 

On the UNG daily chart, below, UNG back over $7.05 would be an impressive feat, up and out of the highlighted triangle consolidation and possible bottom. The buy volume yesterday was also strong. 

Going forward, as long as natty can take baby steps without giving back yesterday's gains below $6.80, for example, a more constructive view as the market potentially discounts hurricanes later in the season makes sense. 

But even if no major hurricanes strike this season, it is worth noting that despite a lack of elegance in its price action, natty has been so bad for so long that rallying sharply into a benign hurricane season would make sense as a contrarian play, too.