It Ain't Much, But It's Honest Work

One of the notable aspects about the recent multi-quarter breakout in natural gas, seen below on the UNG ETF daily timeframe, updated, is the little attention it received. To be sure, financial and social media alike have been harping on crude oil, for example, but even with obvious seasonal tailwinds still in play natural gas is viewed as the long-term laggard stepchild. And while that criticism is understandable, given how poorly natty has acted for years on end, this sort of apathy is precisely what I look for at potentially major inflection points. 

As you can see on UNG, the commodity ETF has been bull-flagging nicely since we last looked at it and played with long with Members. After this morning's weekly inventory report showed below-forecast storage injection, the possibility of a new leg higher is viable. 

It is also worth noting that even if this morning selloff in equities has legs, natty has proven time and time again over the years that it can trade in its own world, oblivious to equities and, at times, even crude. That held true as natty was the worst of the worst amid an equities bull run, but it should also hold true if natty is entering a new bull cycle. It may not be sexy, but it's honest trading.