Friday, September 11, 2009

Natural Gas Snap Back

When shorts are forced to cover, this is often what happens. Short traders were forced to buy to liquidate their positions. Now, prices are selling off again. When prices move too far, too fast, this snap back often occurs. I call this the "rubber band effect". This was exactly what I expected. This was a 400-point sell-off, following a 1000-point week-long rally!

4 Hour chart