Natural Gas Report July 2nd: Short Term Bounce But We Remain Bearish

Natural gas inventories were reported today, showing a drawdown of 70Bcf.

Here is the chart comparing 2008 and 2009 inventories:
As you can see, we are still well above the top of the 5-year average channel.

This week's report is actually short term bullish, so we expect a bounce, but we remain short until late July, or early August. Incidentally, UNG is trading very near it's all-time low:

UPDATE 3:40PM

Please see the UNG chart for today:



There was the bounce at 10:30AM, and it was all downhill from there. UNG is indeed reaching its all time low now:




The 3 month chart clearly shows the low: