March Natural Gas is up 12.6 cents at $$5.223 this morning as I write.  The included chart shows that natural gas is having a nice short covering rally with the current cold weather.  Technically, the long term trend is still down.  A lot of base building needs to take place to convince me that a long term buy is worthwhile, ever since the contract lows were breached recently.  The directional movement indicators have been flipping back and forth from buy to sell and back to buy again recently.  My other indicators are mixed.  Meanwhile the ADX line continues to fall, suggesting no strong trend.  I recommend standing aside in natural gas.  If you are long natural gas, I would recommend liquidating on this rally.

 David Hall

 The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.