You’re trading the Henry Hub contract in the United States, so therefore it’s all about the United States. There are some exports coming out of the United States into the global market, but for the most part, it’s a domestic market, and therefore you need to be aware of weather patterns, transmission through natural gas lines in the United States, and a whole host of other things like weather in the Gulf of Mexico, whether or not it’s going to disrupt refineries.
That being said, the easiest trade is to take the cyclical trade. So, I’m building up a position again. I had sold off quite a bit of it during the heat wave, and now I’m building up for either the next heat wave or colder temperatures being priced into the futures market. Remember the futures market will be ahead of us. So, in the next couple of months, futures traders will start to focus more on winter.
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