10 year low

On Tuesday, NYMEX April natural gas fell 5.2% to $2.355/MMbtu, which was 3.3 cnts above another 10 year low “target”. Prices have been hitting decade lows on the way down. So the new low was bait for the bears if you ever saw it.  Yesterday the market opened at $2.34 and in 72 minutes fell to $2.28, or 6 cnts/MMbtu.  I was in NYC speaking at the Morgan Stanley MLP conference and could hear screams from the street – “It’s the end of the world as we know it!”  The market seemed to be gunning for $2.20 which would have blown through all sorts of technical supports and targets.  Of course, it would also be consistent with the huge overhang in storage inventories that has been a frequent topic in RBN postings over the past few weeks.