Hedge Fund Buying & Commercial Selling in Gas

Increase buying from hedge funds has been offset by some selling from commercial traders into price strength.

Natural Gas ETF and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Headline: Hedge Funds Almost Double Bullish Gas Bets on Cold Snap: Energy Markets

Hedge funds almost doubled bets on gains in natural gas as futures climbed to the highest level since August on forecasts for colder-than-normal weather.

The funds and other large speculators raised their net-long positions, or wagers on rising prices, in four gas contracts by 94 percent in the seven days ended Jan. 4, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report. It was the biggest increase in records dating to January 2010.

Source: finance.yahoo.com