Hey Lee, it looks like NG is accelerating here again after a brief consolidation from the first upthrust...moving nicely off that $4 level for the moment.
I have two key thoughts about today's action. 1) With tomorrow being September 1st, I think today's move is like the starting gun signalling the launch of NG's seasonal strength that is typical in this timeframe, and 2) When NG is strong like this on a Wednesday, the Thursday report comes in bullish more often than not.
It's not a time to be considering short positions in this market IMHO. Sure, some may want to stand aside from long positions until all the technicals 'prove' a turn is in, but shorting at this level (and time) might turn out to be a surprisingly bad idea for those who have been conditioned to think that NG will remain a bear forever. Every dog has his day and this one is certainly due, lol. The weather patterns and potential storm systems that CJ talks about are probably being factored in here as well...could turn out to be a 'perfect storm' for NG, lol...pardon the pun :)
Here's a look at the last 10 days on the October contract: