Natty Gas: Maybe the Nine Millionth Time Will Be the Charm

Anyone who has traded natural gas over the years, be it the commodity futures contract themselves or the various ETFs, knows how uniquely tricky it can be insofar as various head-fakes and traps. 

However, with the energy complex catching a strong bid during the middle portion of this summer, namely crude and gasoline futures, it is certainly worth tracking whether the move natty is making currently has legs. 

On the UNG ETF daily chart, below, we can see today's strength from what could be a base bottom. With Members, we have been wanting to see $7.50 break and, most importantly, hold to have us thinking a true sustained move is afoot. 

And when you factor in natty cerrtainly higher now than where it was in early-June, one has to wonder if it will only pressure the CPI and consumers further on a going forward basis--You will note how sticky the strength in gasoline futures (UGA ETF) has been. 

Overall, as stocks bounce into the CPI later this week many signs continue to point to renewed inflation rather than a great disinflationary period.