Natural Gas: Whoever Said the Rhyme Did the Crime

The battle to trade even a brief, cyclical bull run in natural gas may very well feel as though it has morphed into its own version of The Hundred Years' War for natty longs, what with a seemingly never-ending downtrend oftentimes failing to muster a tradable bounce for more than a day or two, at most. 

Indeed, natural gas has been the epitome of a very short-term trading vehicle, more often than not, with disciplined traders using the triple-levered ETFs like UGAZ (bull) or DGAZ (bear) carefully for fast moves. 

But on the UNG daily chart, below, which is the straight-up ETF for natty, note the potential base bottom forming with the cold winter months coming sooner than you think. 

The weekly inventory report on Thursday morning may very well tip the scales in favor of yay or nay for this pattern confirming higher over $7 or instead crumbling to pieces, yet again. 

But with energy stocks at least showing a pulse of late, it would behoove us to keep tabs on natty for some signs of a more meaningful inflection points, regardless of prior history--Because if we do see some more strength up and out of this base bottom, whoever is saying the rhyme of the prior disappointments will surely be doing themselves a crime in ignoring the progress. 

A few natty-related stocks worth tracking, too: CHK GLNG LNG SWN.