Savvy Trades and Investments

[researcher59]

BOIL +.21 to 7.03 as NG hits $2.82/mcf up nearly 50% from the recent low of $1.96 .... NG didn't deserve to trade down to $1.96, but I think it's somewhat overvalued at $2.87 given the big inventory surplus of 350 Bcf to the 5 year average for this time of year. Even with some colder than normal March weather and Freeport ramping up export volumes, it's probably going to take 6+ months just to get back to normal inventory levels. Yet the NG futures market is in contango, predicting higher prices in the coming months including over $3.30/mcf by June .....

If this rally continues, it may present an opportunity to buy KOLD in anticipation of a downward correction in NG prices .....