Nothing to me unfortunately. I've stopped watching news. It's only what price does when institutions start processing the news that is of any interest to me. What exchanges do is even of less interest.
Did or do you trading "Natural Gas" NG at Nymex? My strategy shows excellent results at this instrument. I'm a little afraid to commodities with a physical settlement type. But i think if you close your trades at the right time, then it's a non-issue. But you should look at your trading calender often. Any other advices?
I find NG an excellent instrument to trade the closing hour, 1:30 to 2:30 PM EST. It tends to trend well, and can usually move 50 ticks. On the other hand, it's less volatile and more predictable than CL. As long as you day trade, there's not much to worry about.
The following user says Thank You to shzhning for this post:
This isn't something one should worry about. I believe all commodity contracts have these specifications. All it means is that trading will be halted if there is a wild swing of at least $3 dollars during any given trading session...which is highly unlikely to happen.
I trade primarily NG but also take trades in TF and CL...I like Natural Gas because it has a lot of really nice trending sessions. NG has been governed by bear sentiment for the past four years.
Generally speaking, Gas rallies during winter months when demand in the North East is high and inventory is declining. Natural Gas is also very sensitive to news, especially IEA Natural Gas Inventory which comes out every Thursday at 10:30 ET. I have watched the price swing by over a point in a 3-5 minute interval when the inventory numbers come out.
I also keep a close eye on the National Weather Service ..specifically weekly forecasts for the North East during cold months and forecasts for the Gulf region during summer/fall. Hurricanes can damage shale gas fields in the Gulf and infrastructure that delivers NG for distribution to the Henry Hub in Louisiana.
Severe weather, like inventory numbers gets priced in swiftly and ruthlessly.
Last edited by 0bl1vion; November 23rd, 2012 at 09:01 AM.
The following 2 users say Thank You to 0bl1vion for this post: