Some traders saying this markup in price is due to the cold snap on the east coast? maybe it had some small part to play as a catalyst but i feel most traders are missing the point.
The same happened to the XIV and insane flash moves like this can be traced back to 2009, a time when banks and traders were severely over leveraged. Apparently issues like this have still not been addressed and this insane bullrun is simply due to gigantic hedge funds pulling the plug on a short play that has been working out spectacularly for 10 years now. There's no hiding that the long oil short natural gas has been a winning combo for 10 years and its guaranteed that this has been taken advantage of for slightly too long.
Unfortunately all good things must come to an end and the lack of liquidity to sustain these big leveraged hedge fund plays is another red flag to add to the current recession indicators. Hedge funds are over leveraged and control an excessively important part of the stock market. When they decide to pull the plug, momentum and dumb money will follow.
my bet? gold
The same happened to the XIV and insane flash moves like this can be traced back to 2009, a time when banks and traders were severely over leveraged. Apparently issues like this have still not been addressed and this insane bullrun is simply due to gigantic hedge funds pulling the plug on a short play that has been working out spectacularly for 10 years now. There's no hiding that the long oil short natural gas has been a winning combo for 10 years and its guaranteed that this has been taken advantage of for slightly too long.
Unfortunately all good things must come to an end and the lack of liquidity to sustain these big leveraged hedge fund plays is another red flag to add to the current recession indicators. Hedge funds are over leveraged and control an excessively important part of the stock market. When they decide to pull the plug, momentum and dumb money will follow.
my bet? gold
Comment:
short term graph shows the melt up in natural gas, whomever or whatever fund or entity decided to liquidate their position got absolutely trashed on value and we will most likely see a return to the mean.
