IS TODAY THE DAY?

We have been expressing our never to be humble opinion on natural gas lately and taking the position both intellectually and monetarily that nat gas is about to break out. The daily chart of the UNG certainly looks like its ready to breakout higher and today's nat gas numbers perhaps will provide the fuel. 17 is the first wall to get through. Then we have some congestion at 18. After that we have 20 and 25. If the UNG runs to 25 it would mean nat gas going to about 6 bucks. Not impossible.
BTW NYC along with Chicago are experiencing their coldest Junes on record. If this weather pattern holds into the fall its going to be a driver for nat gas heading into the winter season. And believe it or not some traders will soon be putting that concept on their radars.

The USO which reps crude oil has had a nice rally but at some point we should see a buyable pullback to its 34 day moving average which is around 35.25 or a 10% or so move down from here. So i guess if crude were to correct to say 64 or 65 it might provide an entry point.

Okay back to mlps. We have corrected to the 55 day moving average yesterday which is about 8% off the top. If we are in a bull move this should be about the limit. We cut the losses yesterday to less than 4 points at the close so we look to today to see whether its just a correction or something more.

Secondaries have been driving the big cap mlps lower which has been a drag on the index. Pretty much every large mlp has done a secondary and at least that means that they won't be coming back to the well for awhile. If economic conditions approve they may not have to come back to the well for the rest of 2009. This morning we have no corporate headlines and no upgrades or downgrades so far. Crude is a little lower this morning and nat gas is a little higher. Stock futures are basically flat. We have options expiration tomorrow and of course end of quarter approaches. So lots to digest this morning as we head into the open.