That being said, we need some type of external move or pressure to send this market higher, and that might come in the form of a heat wave in the summertime, or it may just simply be a situation where you’re waiting until fall to see temperatures plunge. Either way, eventually it will bounce, but by not being levered, you have the ability to take advantage of this move when it happens.
This looks very much like an accumulation phase. Accumulation is when the “smart money” will jump into the market and start taking advantage of a commodity or asset when it’s cheap. However, you will have to be able to hand onto the trade, and therefore you have to make sure you aren’t overexposed in this market.
For a look at all of today’s economic events, check out our economic calendar.
